Paper 1 Exam Date: April 30, 2025, Afternoon Session
Paper 3 Exam Date: April 30, 2025, Afternoon Session
Paper 2 Exam Date: May 2, 2025, Morning Session
Exam Date: April 30, 2025, Afternoon Session
1 hours 30 minutes
30 Marks
Based on Pre-Released Case Study
Assesses all 5 topics of syllabus
25% of IB Mark
2 Sections: A, B
A: 20 marks
B: 10 marks
Total: 30 marks
Receive a pre-released case study (approximately 200 words) along with Additional Terminology in February
Rest of the case study and stimulus material are unseen and will consist of 800 - 1000 words, which you see on the actual day of the exam, which includes the pre-released statement.
All answers written on separate answer sheets (different from Paper 2)
Paper 1 Overview from the IB
Paper 1 is the same for SL and HL students. Three months prior to the examination the IB will release a statement with two elements. The first element will be a small number of topics that provide context to the case study. These topics will not be topics that are in the guide but ones that students are asked to research for approximately five hours. Topics in the pre-released statement will build on topics contained in the syllabus. The aim is to assess students’ knowledge around important contemporary business topics that could not have been anticipated when the guide was written.
The second element will be the first 200 words, approximately, of the case study itself. The release of this portion of the case study will provide additional context and will reduce the number of words to be read during the examination period. The aim of the paper is to assess students’ knowledge of the business management syllabus. The examination is based upon one case study, of approximately 800 to 1,000 words, that students do not see before the examination. Most questions will be qualitative, although some minor calculations could be part of the assessment.
Answer all structured questions based on the case study.
The maximum score = 20 marks
All 5 units of the syllabus can be assessed, except for HL only topics.
Section A Paper 1 - Example
Answer 1 out of 2 extended response questions based on the case study.
The maximum score = 10 marks.
All 5 units of the syllabus can be assessed, excluding the HL only topics.
Section B Paper 1 - Example
Approximately 2-3 minutes per mark
Time: 1 hour 30 min
30 marks
Section A = 20 marks
Suggested 40-50 min
Section B = 10 marks
Suggested 30-40 min
Total: 1 hour 30 min
Go over the format of a Paper 1 Exam
Read the Pre-Released Case Study (Additional Terminology and Case Study)
Look for key terms in the Case Study
Define all key terms
Extra: write at least two sentences for each key term . State what each of the terms mean, plus provide a contextualized example
Go through Business Management Syllabus (Units 1 - 5) and connect the Business tools, theories, and concepts to the case study and additional terminology, coming up with possible Final Exam Questions
Come up with at least 10 possible exam questions, using command terms and post them on the following link
Work in pairs to create a SWOT and STEEPLE and then create a mini presentation or poster on any one of the following:
Publicly held multinational companies
The global market for non-alcohol drinks*
Internal vs external growth strategies (in the context of Myt PLC)
Horizontal vs vertical integration strategies (such as the acquisitions of Honest Water and Lotssa Coffee)
Promotional strategies (in the context of Myt PLC), including social media influencers
Obesity and diabetes as major health issues
The coffee retail industry (in the context of Lotssa Coffee)
The bottled water industry (in the context of Honest Water)*
Green factories (in the context of the drinks manufacturing industry)
Trends in the healthy snacks market
Top 5 things you need to know about sugar substitutes (or diet drinks as an alternative), such as their potential impact on metabolism#
The world’s best selling non-alcoholic drinks
Computer-generated avatars (in the context of advertising)
Corporate social responsibility (in the context of Myt PLC).
# Is Diet Coke really that bad for you? It seems like the jury is out on this one. This article suggests that Diet Coke is not outright toxic, but can certainly have negative health effects, particularly due to artificial sweeteners like aspartame.
However, regulatory bodies like the FDA and WHO state that aspartame is safe within acceptable daily limits. So, this suggests there are certainly some marketing and CSR challenges ahead for Myt PLC.
Discuss how the SWOT analysis can be used by the directors of Myt PLC to formulate a suitable business strategy to maintain their competitiveness and profitability in the non-alcoloholic beverage market.
A STEEPLE analysis provides a comprehensive overview of the external factors that shape Myt PLC's operations and guides its strategic decision-making.
This can be useful for the 10-mark question in Section B, such as:
Evaluate the impact of changes in the external environment on BON’s competitiveness in the European music festivals industry. [10 marks]
Justify the importance of sustainability initiatives for BON. [10 marks]
With reference to BON, discuss the importance of ethical business objectives and corporate social responsibility (CSR). [10 marks]
Examine the impact of the external environment on the operations of BON. [10 marks]
Inquiry question: How does diversification help a multinational company like Myt PLC to remain competitive in an ever- changing market?
Key concepts: Change, creativity, ethics, and sustainability
Tasks:
As a class, or in groups, discuss Myt PLC’s decision to diversify into the coffee shops and bottled water markets.
In pairs or small groups, research the global trends in coffee and bottled water consumption.
In your pairs or groups, prepare SWOT analysis for Myt PLC’s diversification growth strategy.
For example, consider whether data like this presents an opportunity or threat to Myt PLC - does obseity peaking mean less of a threat to Myt or an ongoing threat due to the decline in the consumption of sugary drinks? What business opportunities might even arise from this?
Inquiry question: How can a multinational company like Myt PLC address ethical concerns related to the health and environmental impacts of its business operations?
Key concepts: Ethics and sustainability
Tasks:
As a class, discuss the potential health issues associated with high sugar and caffeine consumption (beyond just obesity and diabetes). Use the case study information about obesity, diabetes, and health concerns with sugar substitutes to start these discussions.
Brainstorm potential CSR strategies that Myt PLC could adopt, focusing on product health improvements and the ethics of promotion and marketing.
Examine Myt PLC’s diversification into water (a healthier product) by acquiring Honest Water and whether this aligns with the parent company's CSR principles.
Reflect on how multinational companies like Myt PLC can balance profit-making with ethical responsibilities and how this affects their brand image and stakeholder relationships.
We will work on the following Paper 1 Mock Exam in class. You may work in groups if you prefer and with your notes.
You should finish Section A in the first class and then Section B in the 2nd class. You only have 1 hour and 30 minutes total.
https://drive.google.com/file/d/1zSBXvtw3DDP9z39b4Qz1dIus6ORfEIJE/view?usp=sharing
We do a Paper 1 Mock Exam in class. This will be individual and timed, practicing as close to the Paper 1 conditions as possible.
You should finish Section A in the first class and then Section B in the 2nd class. You only have 1 hour and 30 minutes total.
Additional Activities:
Inquiry-based tasks
What are healthy snacks?
How are computer-generated avatars used in advertisements?
What are the costs of running a drinks manufacturing business?
How successful are sugar-free (diet) drinks in the industry?
What are green factories?
What are examples of CSR in the non-alcoholic drinks industry?
What are the different recommended daily sugar intake amounts for different people?
Investigate the corporate strategies of one of these leading competitors in the non-alcoholic drinks market:
Coca-Cola Company (the largest rival in the industry, now focusing on healthier substitutes).
PepsiCo (expansion into juices and plant-based drinks).
Nestlé (ready-to-drink teas and premium coffee brands).
Danone (dairy-free alternatives).
Red Bull (market leader in the energy drinks sector).
Terminology to know
Instructions for students
From the given key terms above, write definitions for each.
Do this on your own… whilst there can be benefits in working collaboratively (such as by using Google Doc to create a glossary), it is important that you know what each and every term in the pre-release statement means.
For the words in bold (Business Management content) make sure the key terms are defined in your own words, and written in the context of the Myt PLC (Myt) case study.
advertisements
avatar
biodegradable
board of directors
bottled drinking water
caffeine
carbonated drinks
chain (of a business)
company
corporate social responsibility
diabetes
diet drinks
diversification
external growth
green (factories)
grown (growth)
health issues
internal growth
manufactures
market development (entering new markets)
multinational company
obesity
outlets
portfolio (product portfolio)
plans (business plans)
pressure group
products
promotional strategy
publicly held company
non-alcoholic drinks
recycling
social media
social media influencers
sugar substitutes
taking over (takeover)
Define the term publicly held company (line 1). [2]
Define the term corporate social responsibility (CSR) (line 20). [2]
Define the term internal growth (line 4). [2]
Define the term external growth (line 4). [2]
Define the term takeover (line 12). [2]
Define the term multinational company (line 1). [2]
Identify two stakeholders of Myt PLC. [2]
In the context of Lotssa Coffee (LC), outline the meaning of "chain" of coffee shops (line 13). [2]
Describe two types of businesses, other than coffee shops (line 13), that operate in the tertiary sector. [4]
In the context of Myt PLC, distinguish between internal and external growth (line 4). [4]
In the context of Myt PLC, distinguish between economies of scale and diseconomies of scale. [4]
Explain two ways in which pressure groups can impact the operations of Myt PLC. [4]
Describe two features of a publicly held company (line 1). [4]
Explain two reasons why it is important for Myt PLC to improve its CSR (line 20). [4]
Explain two potential challenges Myt may have faced while expanding through external growth (line 4). [4]
Myt is a multinational company (line 1). Explain two benefits and one drawback to host countries of Myt. [6]
Define the term board of directors (line 6). [2]
State two roles of the board of directors (line 6). [2]
Describe two roles of human resource management (HRM) for a large multinational company like Myt PLC. [4]
Explain two potential barriers to effective communications for Myt PLC, with its operations across six continents. [4]
Explain two ways Myt PLC's organizational structure is likely to have changed as the company grew (line 4). [4]
State two sources of external finance that Myt PLC could use to fund its external growth (line 4). [2]
State one example of a fixed cost and one example of a direct cost for Myt PLC. [2]
In the context of Myt PLC, distinguish between revenue expenditure and capital expenditure. [4]
Explain two reasons why working capital is important to a large multinational company like Myt PLC. [4]
Explain two suitable sources of finance for Myt PLC to modernize and make its factories green (line 16). [4]
Explain two reasons why it might be important for Myt PLC to generate new revenue streams. [4]
Define the term product portfolio (line 6). [2]
Define the term products (line 19). [2]
Define the term promotional strategy (line 7). [2]
Define the term advertisements (line 18). [2]
Explain two reasons why it is important for Myt PLC to have a "large portfolio of over 30 different drinks" (line 6). [4]
Explain one benefit and one drawback of Myt PLC using social media influencers in its promotional strategy (lines 6 - 7). [4]
Describe one production method that Myt PLC is likely to use. [2]
In the context of Myt PLC, describe mass production. [2]
In the context of Myt PLC, describe the role of operations management. [2]
Myt PLC is a multinational company (line 1). Explain two reasons for a specific location of production for a MNC such as Myt PLC. [4]
Explain two advantages and one disadvantage for Myt PLC of using flow production for making its non-alcoholic beverages [6].
The following are for illustrative purposes only - there are no mark schemes for these questions due the lack of stimulus material in the pre-release statement.
With reference to Myt PLC, discuss the importance of corporate social responsibility (CSR) (line 20). [10]
To what extent should environmental sustainability be a key strategic priority for Myt PLC as part of the company’s growth strategy? [10]
Examine the impact of the external environment on the operations of Myt PLC. [10]
Evaluate the impact of changes in the external environment on Myt PLC’s profitability. [10]
Recommend a suitable marketing mix for Myt Plc's announced plans (lines 15 - 20). [10]
Recommend how Myt PLC should fund the modernization of its factories (lines 16). [10]
Using the information in the case study, and your knowledge of business management, recommend whether Myt PLC should enter the healthy snacks market (line 17). [10]
Explain one strength and one weakness of Myt PLC. [4]
Explain one opportunity and one threat facing Myt PLC. [4]
In the context of the Ansoff matrix, define the term diversification (line 12). [2]
Define the term business plans (line 15). [2]
In the context of circular business models, explain one advantage and one disadvantage to Myt PLC of recycling plastic bottles for its carbonated drinks and bottled drinking water. [4]
Describe two parts of a typical business plan (line 15) for Myt PLC. [4]
In the context of the external environment, explain three challenges that Myt PLC faces. [6]
For a timely case study, watch this short YouTube video about PepsiCo's acquisition of Poppi for just under $2 billion in March 2025. With health-conscious consumers shifting away from sugary sodas, prebiotic and functional beverages are the new trend. PepsiCo's strategic move was made in response to the steady decline in consumption of sugary drinks over the past two decades as well as the growing popularity of the booming prebiotic soda market. These healthy soda alternatives use only 5 grams of sugar whereas a standard 330ml can of Coca-Cola contains approximately 35 grams of sugar.
Watch this video about how Coca-Cola (the world's most popular beverage) is made. Apply this knowledge to consider the production processes for Myt PLC's non-alcoholic drinks. Notice the precise mixing of ingredients, carbonation, filtration, and bottling or canning within the Coca-Cola Company's state-of-the-art production facilities for the mass production of its drinks.
Check out the Paper 1 Specimen paper
Student Samples with Mark Schemes - HL Paper 1 Specimen Paper