1.0. Business organisation and environment

Unit 1 Business organisation and environment

In this first introductory unit, business management is set in context: students learn to analyse organizations’ internal environment (for example, stakeholders, strategic objectives and CSR) and external environment (for example, the impact of technological change and globalization). Unit 1 covers traditional business areas such as the different types of organization and the idea of economies of scale, but it also includes more contemporary topics such as the features of social enterprises, the nature of business activity in the quaternary sector and the distinction between entrepreneurship and intrapreneurship.

Both SL and HL students learn to apply fundamental strategy models such as social, technological, economic, environmental, political, legal and ethical (STEEPLE) analysis as well as the strengths, weaknesses, opportunities and threats (SWOT) analysis; HL students also learn to apply and evaluate more specific tools such as fishbone diagrams, decision-trees and force field analysis. However, given the importance of the overarching business themes introduced in unit 1, most content is common to both levels.

As this unit provides students with an overview of business management both as a topic of study (what the subject covers overall) and as a professional practice (what business managers do), it lends itself to many TOK considerations. On the one hand, students may inquire into how and why a particular model becomes established as a mainstream strategy model. On the other hand, they may ask on what basis business managers make decisions in the real world. Unit 1 is also an open invitation to consider a range of international examples, especially in relation to issues of globalization, and to address businesses’ ethical, social or environmental obligations, which fits well with the IB learner profile in terms of developing principled thinkers. It may also provide the impetus for entrepreneurial service learning projects in the local community as part of students’ CAS requirement.

Source: IB Business Management Guide 2016: 24