Topic 1: Nature of Business

nuthookcanteenManagement

Nov 20, 2013 (3 years and 9 months ago)

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Business


Higher level



Topic
1
:
Nature of Business



About the Section


In this unit students:



Learn

the basic
functions of

businesses
.



Distinguish

between different types of businesses.



T
ypes of business
operations and areas



understand the different levels and uses of objectives



apply stakeholder
analysis

to situations



Understand

the external
environment

and how it affects businesses.



Apply

different strategies for growth of a business.




Learn

about globalization
and how it affects them.



Needs for Multinational companies



Expectations


At the end of this unit


Most students will:
learn the basic ideas of: the
external
environment
, types of businesses, the
difference

between external and inte
rnal growth,
how globalization has
affected

their lives, make an
ansoff matrix from memory, understand how
stakeholders affect each other, understand the
importance of objectives to the business world.


Some students will:

understand
privatization
,
differentiate between the right expansion plan for a
business, how globalization has
affected

the business
world, implement an ansoff matrix for a business
from memory, have basic ideas on how to solve
stakeholder conflict, make SMART objectives for a
si
tuation.

Prior Learning


It is helpful if students:



Understand

the difference
between public companies and private
.



Have

ever worked a job.



Likes to watch/read business related news/articles



H
ave a family with business background


Language for
learning

(fill in)


Through the activities in this section students will be able to understand, use words and phrases
relating to:



Opportunity cost,
NGO, NPO,
Entrepreneurs
, Industrialization,
Article’s

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2


Learning Objectives

Possible Teaching Activities

Time frame

Points to Note

Syllabus Refs



Resources

Resources include:



Paul Hoang Business and
Management
.



Cambridge Business studies guide



IB course Companion



www.
T
utor2u.com



Article

about airline merger





















3


Learning Objectives

Possible Teaching Activities

Time frame

Points to Note

Syllabus Refs



Nature of Business Activity



Identify Inputs and outputs



Explain the
different

responsibilities

of
different

departments



Understanding

the difference
between sectors of an
economy and how
businesses
function

in them.



(HL)
Analyse the impact on
business activity of changes
in economic structure.




Students will be asked to
explain

the roles of the departments
around the school.



I
dentifying the
primary
, secondary and
service

sector business in
the
home

town



Short video showing a book going through the
different

levels of
production.



E
xamples of
S
pecialised jobs in an organisation



Case study used as an example for the deferent departments.



(HL)
Analyse the impact on a business in the secondary sector if
the national economy is earning increasing proportions of
national income from tourism.




3 Weeks



Students will
need to be
ready to
understand
that we will
be learning
about the
western
business
world.



1.1


Types of organizations



Examine the
difference

between public and
private

organizations.



(HL)
Analyse the relationship
between organizations in the
private and public sectors.



(HL)
Explain the nature of
public
-
private partnerships.



(HL)
Analyse the costs and
benefits of cooperation
between the public and
private sector.



Analyse

reasons for starting a
business and problems with
start
-
ups
.



Identify
advantages

and
disadvantages of
S
ole trader,
Partnership, private/public
limited

business types.



Analyse

the
C
ost and benefit
of private public partnership



NGO and NPO introduction



Have students talk to a small business owner in
their community
and find out the real problems they faced.
(short
assignment
)



Case study will be used as an example of the
different

types of
businesses. (
Which

ever do not fix will work for good examples as
well).



(HL)
Analyse the relationship between a hospital in the public
sector and a hospital in the private
sector.



(HL)
Discuss with students the reasons of partnership between
HONGKONG government and Disney Co. to build the Hong Kong
Disneyland.



Cross charts can be used to see the correlation between
advantages of one business type to disadvantages of others.



Match making activity for t
y
pes of business



S
howing
Chinese

and other countries business licence picture



P
reparing mock MOU



3 Weeks



Students may
have
trouble

with

why
some
businesses
will choice to
be one type
over another




1.2

4


Learning Objectives

Possible Teaching Activities

Time frame

Points to Note

Syllabus Refs




Organizational objectives



Understanding the difference
between Strategic and
Tactical
objectives



Distinguish

between mission
and vision statements.



Evaluate the importance of
objectives being SMART.



(HL)
Evaluate the need for
firms to change objectives in
response to changes in the

internal and external
environment



Analyse

the
importance

of
CSR as well as Ethical
objectives.



(HL)
Discuss why a firm’s view
of its social responsibilities
may change over time.



(HL)
Discuss why attitudes
towards social responsibility
may change over time



(HL)
Analyse the impact that
changes in societal norms
have on the way that firms
behave in a national and
international context.



(HL)
Analyse the reason why
firms

may choose different
strategies towards their
social responsibilities.








TOK
CONNECTION



students will be asked to answer and present
a series of questions such as:
Is it wrong to make money from
educational services.
Should business reduce production cost by
exploiting cheaper resources in LEDC



(HL)
Examine how the objective a Chinese telecomm
unication
company might change if it moved from the public to the private
sector of the economy.



Articles of real life CSR
can be used to show
different

ways
businesses take advantage of strategic CSR.



C
ase study of CocaCola and Lenovo

to analyse their CSR

roles



V
isit
www.pg.com

and learn about their objectives, compare
them with the objectives of
Lenovo

computers.



C
ompare Disney, Nike and Sony vision statement



(HL)
Watch the video about the Intel’s CRS change, then discuss
about this issue.
<http://
www.youtube.com/watch?v=Rwa34fyVP9k
>



3

weeks



Students
should be
familiar with
the graphs
associated
with damping
and
resonance.



1
.
3


5


Learning Objectives

Possible Teaching Activities

Time frame

Points to Note

Syllabus Refs



Stakeholders



D
istinguish

between internal
and external stakeholders



E
xamining their stakes in
the
business



C
auses of stakeholder
conflicts



Evaluate different strategies
for dealing with stakeholder
conflicts



(HL)
Evaluate possible ways
to overcome stakeholder
conflict



TOK CONNECTION


do
much business

ignore external
stakeholders other than customers?



Create a stakeholder map for case study.



I
dentifying the stakeholders in the school, in local community



Activity about the pressure group in local community



A

stakeholder conflict case study as example
and their conflict
management strategy.



(HL)
Evaluate two possible solutions to a potential conflict
between workers and managers of our school



3 Weeks



Students in
China need
to
understand
that pressure
groups in
other
countries do
have power.



1.4


External
Environment



Distinguish

between internal
and External
effects

on a
business



Apply Pest
analysis

to
different businesses



Establishing

relation
between PEST and SWOT




CROSS CLASS CONNECTION (
chemistry
)


how does a
chemical

company deal with their external
environment

in different
countries.



CROSS CLASS CONNECTION (economics)


how are
decisions

made by
governments

for the
monetary

and
fiscal

policies.



Airline project


how will a given cities external
environment

affect
the airline.



Examining a business closure or
expansion

through external
environment such as Govt Policy or change in economic state



A
moy food hong kong case study
about

using MSG in their
products



Examining environmental opportunities for rice production in
Thailand

and
Philippines



Social threats for
operating

in EDC

s












3

weeks



Students
have to
understand
that a
business
cannot affect
the external
environment
.

.



1.
5


6


Learning Objectives

Possible Teaching Activities

Time frame

Points to Note

Syllabus Refs




Organizational
planning tools



(HL)
A
nalyse and interpret
business plans



Understand the importance
of business tools and how to
implement them
affectively




Prepare

a SWOT
analysis

for
different businesses



Explore

business plans and
their uses



P
utting different tools
together in practice



L
earning changes in
economic growth



(HL)
Apply decision
-
making
processes and planning tools
to a given situation and
evaluate their value



(HL)
Compare and contrast
scientific and intuitive
decision
-
making processes



(HL)
Construct and inte
rpret
decision trees.



(HL)
Critically evaluate the
value of decision trees as
decision
-
making tool.












TOK CONNECTION



short discussion in class on the amount of
decisions we feel are made by assumptions rather than scientific
decision tools.



CROSS
CLASS CONNECTION (
physics
)


how does the
scientific
method compare to business
decision
-
making

framework.



(HL)
Analyse the reason why a bank manager needs to examine a
business plan when considering whether to grant a new loan to
them.



Use all the variou
s tools on the case study as practice.



Prepare a

SWOT
analysis

and use it to analyse an organisations
position.



C
reating a PEST for starting a rice farm in Indonesia and a mobile
phone production facility in Japan




(HL)

Use a decision tool such as the fishbone diagram and analyse
the cause of increasing faults in the manufacture of jeans at Levi’s
(past paper)



(HL)

Distinguish between scientific and intuitive decision
-
making
processes.



(HL)

Construct a fully labelled dec
ision tree for
Goal Plc
. (Past
paper)



(HL)

Identify one internal and one external constraint on decision
-
making in
Hip Hop Plc

(
Past paper
)

2

weeks



Making

the
connection
between the
sciences and
the decision
making
framework is
important.

1.6

7


Learning Objectives

Possible Teaching Activities

Time frame

Points to Note

Syllabus Refs



Growth and
Evolution



Analyse

the
benefits

of Big vs
small organizations through
economies and diseconomies
of scale.



E
valuate the relative merits of
small vs large organisations.



Economies and diseconomies
of scale



Distinguish

between organic
and inorganic growth and the
benefits

of each.



Explore

business plans and
their uses



Ansoff matrix usage



(HL) Evaluate internal and
external growth strategies as
methods of business
expansion



(HL) Examine how Porter’s
generic strategies m
ay
provide a framework for
building competitive
advantage.




E
xamining economies and diseconomies of scale may occur for
local newspaper shop, regional radio company, state controlled
airline.



Use the case study to show how the business
grows by

economies
o
f scale and hurt by diseconomies of scale.



C
ase study on
Chinese

business by growing on economies of scale
while being lower in price



Quick reminder of what a niche market is.



C
ase studies / news articles about a recent JV or Merger
formation



Lenovo &
Thinkpad case study



Nokia Microsoft case study



BP AMOCO merger case study



Watch and discuss video clip:
Top Media CEOs Reveal

Growth
Strategies

<

http://video.cnbc.com/gallery/?video=1769164144
>

3 weeks



Students
need to fully
appreciate

the need for
some
businesses
to stay small.



Student
need to
understand
the
importance
of external
growth.


1.7













8


Learning Objectives

Possible Teaching Activities

Time frame

Points to Note

Syllabus Refs




Change and the
Management of Change

(HL ONLY)




Explain the causes of change
and factors causing
resistance to change



Examine the

dynamic nature
of organizations and the
relative importance of
driving and restraining
forces.



Evaluate different strategies
for reducing the impact of
change and resistance to
change.
























Explain the driving forces that influence companies such as

Vodafone to become more global in their operations



Analyse the driving and restraining forces on multinational
companies (MNCs) that are considering globalizing their sal
es and
manufacturing operations.



Discuss how the process of change can be managed effectively in
Microsoft.



Evaluate the conditions that could be created and incentives that
could be introduce3d to reduce employee’s resistance to change.



Discuss how our sc
hool could successfully mange a change to its new
system of rewarding workers.



Watch and discuss the video clip: Leadership and change
management<

http://academicearth.org/lectures/leadership
-
and
-
change
-
management
>




2 weeks Students need to understand
the importance of staying
ahead of changes in the
business

world.


9


Learning Objectives

Possible Teaching Activities

Time frame

Points to Note

Syllabus Refs



Globalization




Concept of Being Global



Multinational corporations
and how they operate.



Role of multinationals in
global business



C
ause of globalization and
their effects on host country



Regional

trading
blocs

and
how they influence a
business

s
decisions
.




Looking at the Chinese language as Global language contender



M
aking a chart of famous
Chinese

Multinational companies, their
need for
existence

in China.



C
ase study on regional RTB

s like ASIAN and G8 nations



T
alking about the mock UN organisation in the school



Assessing

the agenda on recent G8 and ASIAN meets help in Doha and
in Malaysia



E
xaminin
g the lobbying in major events as Olympics venue or FIFA
world cup venues



S
tudying the protest group influence of recent POSCO project in India,
which was delayed for almost 10 years because of pressure groups
advocating the cultivation of forest land.



Wat
ch and discuss the video clip: In Europe, Anti
-
Globalization
Protests <

http://video.nytimes.com/video/2009/02/04/business/123154708241
8/in
-
europe
-
anti
-
globalization
-
protests.html
>

3 weeks



Students
need

to
understand
the need
and limits of
global
companie
s

1.
9