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What are the best business tools, technqiues and knowledge you can use to Analyze, Evaluate, and Answer your Research Question?
What are the best business tools, technqiues and knowledge you can use to Analyze, Evaluate, and Answer your Research Question?
Relevant Business Tools, Techniques, and Knowledge from the IB Syllabus must be used to analyze your research question.
You can find a list along with descriptions below!
Note: you can use business knowledge from the course syllabus not listed below
Make sure you accurately and appropriately apply them to answer your research question in the context of your chosen business and that they are used to help answer the research question.
Your effective selection (4 marks), analysis and evaluation (5 marks), and conclusions (3 marks) using your chosen tools, techniques, and knowledge will account for almost 50% of your marks (12 marks out of 25 marks total)
Toolkit - Business Management.pdfBusiness Toolkit Descriptions
Situational tool
SWOT analysis considers the strengths, weaknesses, opportunities and threats of a business at a specific point in time. Strengths and weaknesses are internal factors that influence the business, while opportunities and threats are external factors which the business has no direct control over.
Decision-making tool
The Ansoff matrix is a framework of generic growth strategies for a business, based of providing new or existing products in new or existing markets. These four generic growth strategies are categorised as (i) market penetration, (ii) market development, (iii) product development, and (iv) diversification.
Situational tool
This framework considers factors in the external environment that affects a business. STEEPLE refers to the social, technological, economic, environmental, political, legal and ethical aspects of the external environment. It provides an overview of or insight into these external factors that are largely beyond the control of the organization.
Situational tool
Decision-making tool
The Boston Consulting Group (BCG) matrix allows manager to assess their organization’s product portfolio based on measures of relative market share and market growth. It helps with long-term strategic planning and decision-making based on four categories of products: (i) question marks, (ii) stars, (iii) cash cows, and (iv) dogs.
Planning tool
This is an official guiding document that provides details of the organization's strategic goals and how the business intends to achieve these, with reference to the firm's human resources, finances, marketing, and operations management. It is also commonly used to secure loans from financial lenders as well as raising finance from investors.
Decision-making tool
This tool is a graphical representation of showing the probable outcomes of a business decision, based on the likelihood of success or failure of such a decision. The diagram shows the various choices faced by a business, including estimates of the costs and benefits in order to determine the probable risks of a specific courses of action.
Decision-making tool
This quantitative tool is used to summarise a given set of data to support statistical and data analysis. The various techniques help to present a large amount of quantitative data in a simplified and more manageable format. There are eight techniques specified for this tool: (i) Mean average, (ii) modal average, (iii) median average, (iv), bar charts, (v) pie charts, (vi) infographics, (vii) quartiles, and (viii) standard deviation.
Decision-making tool
These models explore how businesses create value for their customers and other stakeholder groups whilst also reducing the environmental impacts of their operations. There are five circular business models specified in the syllabus: (i) circular supply models, (ii) resource recovery models, (iii) product life extension models, (iv) sharing models, and (v) product service system models.
Planning tool
This visual tool helps managers to plan and schedule different tasks or jobs within a particular project. It illustrates the tasks or activities, their duration, and dependencies in order to determine the shortest time required to complete the project and helps managers to schedule resources to complete each task and to keep the overall project on track to be completed on time.
Decision-making tool
This commonly used tool helps managers to explore how a business can gain competitive advantages to help determine its strategic direction. These generic strategies comprise of: (i) cost leadership (producing at a lower cost of competitors), (ii) differentiation (providing products with a distinctive or unique selling point), and (iii) focus (selling specialized product aimed at specific market segments). Focus strategies are further categorised as (i) cost focus and (ii) differentiation focus.
Situational tool
This tool helps managers to understanding the cultural similarities and differences that exist between and across different countries. This helps them to determine more appropriate ways to conduct their operations given different national and international settings. The tool suggests that countries can be categorised into one of six different cultural dimensions: (i) power distance, (ii) individualism vs collectivism, (iii) masculinity vs femininity, (iv) uncertainty avoidance, (v) long-term vs short-term orientation, and (vi) indulgence vs restraint.
Situational tool
Decision-making tool
This visual and quantitative tool is used by managers to examine the forces for and against change to make more-informed business decisions. It is useful during the planning and decision making stages of corporate strategy and change management. It provides an overview, in an easy to understand format, by illustrating and adding statistical weights to each of the driving and restraining forces identified in the analysis.
Planning tool
This planning tool helps project managers to schedule and oversee large and complex projects to ensure efficient resource use and for the timely completion of the project. It maps out all the individual tasks or activities needed to complete the project so that realistic deadlines for a project can be set. The syllabus specifies HL students need to be able to: (i) complete and analyse a critical path diagram. (ii) identify the critical path from a diagram, and (iii) calculate the free and total float from a CPA diagram.
Decision-making tool
This quantitative tool is used to support business decision-making by enabling manager to analyse and evaluate different cost and revenue situations. This tool comprises of three techniques in the syllabus: (i) make or buy analysis, (ii) contribution costing, and (iii) absorption costing.
Decision-making tool
This quantitative tool comprises of three techniques used to identify, describe, and/or predict the relationship between dependent and independent variables under investigation. The three techniques covered in the course are: (i) scatter diagrams, (ii) line of best fit, and (iii) correlation/extrapolation.
Business Tools & Theories
Business Tools & Theories
This is the process of identifying and assessing the interests, influence, and power of different individuals, groups, or organizations that are affected by or have an impact on a business or project. It is also about developing strategies to manage these relationships effectively to achieve organizational goals.
This theory refers to the cost advantages that a business can achieve by increasing the scale (size) of its operations. This is because fixed costs can be spread over a larger number of units of output, resulting in lower average costs. This is important as it leads to competitive cost advantages and improved profitability.
This section of the syllabus is concerned with understanding the factors that influence an individual's level of motivation or demotivation in the workplace. The theories aim to explain why people behave the way they do and what motivates them to take action.
2.5 - Organizational (corporate) culture (HL only)
Organizational culture refers to the shared values, beliefs, attitudes, behaviours, and norms (or customs) that exist within an organization. The culture governs how things are done in the workplace and how people interact with each other. It permeates all aspects of an organization's operations.
Sources of finance refer to the various ways businesses can raise capital to fund their operations, including investment and growth strategies. Without suffificent finance, it is not possible for a business to achieve its objectives. The choice of sources of finance requires careful consideration to ensure the business minimizes risks and maximizes returns from its operations.
Costs and revenues are two of the most important topics in the Business Management course as they play a crucial role in determining a firm's profitability and financial health. All business decisions incur costs but not all strategic choices will lead to improved profitability.
The balance sheet helps businesses, investors, and other stakeholders to understand a firm's financial health, liquidity, and solvency.
The profit and loss account shows a firm's revenues, expenses, and profit over a specific trading period. It is an essential financial statement used to assess a firm's financial performance.
3.5 - Ratio analysis (profitability and liquidity ratio analysis)
Profitability ratio analysis is a financial tool that measures a firm's ability to generate profits relative to its revenue, assets, and equity.
Liquidity ratio analysis is a financial tool used to measure a firm's ability to meet its short-term obligations. This is done by calculating its ability to convert assets into cash.
Ratio analysis helps businesses to evaluate their financial performance, identify areas for improvement, and make informed decisions.
This is an essential financial tool that provides firms with a forward-looking view of their liquidity position (in terms of cash inflows and outflows over a specific time period). It helps businesses to predict and manage their cash flows and therefore to reduce financial risks and improve decision making.
3.8 - Investment appraisal - payback period, average rate of return, and net present value (HL only)
This management tool helps businesses to evaluate the potential profitability and feasibility of investment opportunities. It involves analyzing the costs, benefits, risks, and cash flows associated with an investment decision in order to determine its potential return on investment.
3.9 - Variance analysis (HL only)
This is a financial tool used by businesses to compare their actual financial performance with their budgeted (planned or expected) performance. By identifying these areas, businesses can take corrective actions to improve their financial performance, such as adjusting their pricing, reducing costs, or changing aspects of their operations.
Market share and market leadership are critical for a firm's long-term competitive position. High market share and market leadership offer interrelated advantages such as increased sales, brand loyalty, and economies of scale. Furthermore, they can help businesses to access greater growth opportunities.
4.2 - Segmentation, targeting, and positioning (perception maps)
Segmentation, targeting, and positioning (STP) are marketing strategies used by businesses to identify and target specific groups of consumers with goods or services that meet their specific needs and preferences.
This marketing strategy is crucial for businesses operating in highly competitive markets. A USP sets a business apart from its rvials and helps it to attract and retain customers.
4.3 - Sales forecasting (HL only)
This tool is about the process of estimating future sales and revenue for a business over a specific period of time. It helps organizations to plan their operations, manage their resources effectively, and make more informed business decisions.
This topic is particular well aligned with simple linear regression in the Business Management Toolkit (BMT).
4.4 - Market research - primary and secondary market research techniques
This is the process of collecting and analyzing data to gain insights into changing market trends, customer preferences, and the activities of competitors. It is an essential tool for businesses as it helps them to better understand their customers, make more informed decisions, and stay ahead of the competition.
4.5 - The importance of branding and product extension strategies
Branding is the process of creating a unique name, design, and corporate image for a business or its products in order to distinguishes it from competitors. It is a crucial aspect of any business strategy that helps the firm to establish a strong identity, build customer loyalty, and differentiate itself from the rival firms and products in the market.
Pricing methods are the different strategies used by businesses to set a price for their goods and services. It is an important theory within the course as pricing methods can determine how attractive the firm's goods and services are to existing and potential customers. Different pricing methods can help businesses achieve their strategic goals, maximize profits, and gain a competitive advantage in the marketplace.
Promotion is an essential component of marketing as it helps businesses to communicate with their target audience, build brand awareness, enhance customer loyalty, and increase sales.
An appropriate marketing mix is essential for the success of all businesses as it helps them create a comprehensive strategy that addresses all aspects of their product offering, be it goods and/or services. Establishing an appropriate marketing mix helps a business to creates a strong brand identity, meets changing customer needs, differentiates the business from its competitor, and maximizes sales revenue.
5.3 - Methods of managing quality (HL only)
Effective methods of managing quality are essential for businesses to ensure customer satisfaction, increase operational efficiency and productivity, comply with national and internal regulations and standards, enhance the corporate reputation (brand image), and drive continuous improvement for the firm's long-term success.
The location or relocation of a business can have a significant impact on its success. This topic also covers strategies such as outsourcing (subcontracting), offshoring, insourcing, and reshoring.
Break-even analysis is an important tool for businesses to understand their cost and revenue structures in order determine the output level at which they will begin to earn a profit. This tool can help managers to make more informed decision. It is an important tool for evaluating the financial viability of new business plans, business ventures, and product launches.
5.6 - Production planning: productivity (HL only)
Production planning is a critical management tool that helps businesses to optimize their production processes, increase efficiency, and reduce production costs. It is about managing resources more efficiently and reducing or eliminating waste.
This topic also covers the local and global supply chain process, stock control, capacity utilization, and various measures of productivity.
5.9 - Management Information Systems (HL only)
Management Information Systems (MIS) are computer-based systems that provide information and support for strategic decision-making in organizations. It is a critical component of modern organizations as MIS provides managers with the necessary data and information needed to improve operational efficiency, enhance communications, and enable performance measurement. This all helps to improve a firm's competitiveness and achieve its goals.
Tools and techniques Organized by Unit:
Tools and techniques Organized by Unit:
Unit 1: Introduction
Unit 1: Introduction
Doughnut Economics model Subtopic 1.1
Tool: SWOT/STEEPLE analysis Section 1.1.5
Tool: Business plan Section 1.1.6
Types of businesses Subtopic 1.2
Business objectives Subtopic 1.3
Tool: Circular business models Section 1.3.6
Stakeholder analysis Subtopic 1.4
Growth (quantitative and generative) Subtopic 1.5
Tool: Ansoff matrix Subtopic 1.5.7
Tool: Force field analysis Section 1.5.8
Unit 2: Human Resource Management
Unit 2: Human Resource Management
Organisational structures Subtopic 2.2
Leadership styles Subtopic 2.3
Motivation theories and tools (financial/non-financial) Subtopic 2.4
Organisational culture theories (HL) Subtopic 2.5
Tool: Hofstede’s cultural dimensions (HL) Section 2.5.5
Communication methods Subtopic 2.6
Industrial/employee relations approaches (HL) Subtopic 2.7
Unit 3: Finance
Unit 3: Finance
Sources of finance Subtopic 3.2
Cost and revenues Subtopic 3.3
Tool: Decision tree Section 3.3.4
Final accounts (statement of profit or loss, statement of financial position) Subtopic 3.4
Depreciation (HL) Section 3.4.5
Profitability and liquidity ratios Subtopic 3.5
Efficiency ratios (HL) Subtopic 3.6
Cash flow Subtopic 3.7
Investment appraisal Subtopic 3.8
Budgets (HL) Subtopic 3.9
Unit 4: Marketing
Unit 4: Marketing
Product positioning map Subtopic 4.2.2
Differentiation (USPs) Subtopic 4.2.4
Sales forecasting (HL) Subtopic 4.3
Tool: Simple linear regression Section 4.3.3
Market research Subtopic 4.4
Tool: Descriptive statistics Section 4.4.6
Marketing mix (strategies for all 7Ps) Subtopic 4.5
Product life cycle analysis Section 4.5.1
Unit 5: Operations
Unit 5: Operations
Operations methods Subtopic 5.2
Lean production strategies (HL) Section 5.3.1
Cradle-to-cradle design and manufacturing strategies (HL) Section 5.3.2
Quality management strategies (HL) Section 5.3.3
Tool: Gantt chart Section 5.3.5
Tool: Critical path analysis Section 5.3.6
Location decisions Subtopic 5.4
Break-even analysis Subtopic 5.5
Production planning – productivity, capacity utilisation, defect, make or buy decisions) (HL) Subtopic 5.6
Stock control charts Section 5.6.3
Crisis management and contingency planning (HL) Subtopic 5.7
Research and development (HL) Subtopic 5.8
Management information systems (HL) – any of the elements of this (data mining, artificial intelligence, digital Taylorism, customer loyalty programmes, etc) could make for interesting theory in an IA Subtopic 5.9
Tip 1: SWOT (use it properly)
Tip 1: SWOT (use it properly)
Unless absolutely needed (i.e., it adds value to the business research project), conducting a SWOT analysis is probably best avoided in the IA. SWOT analyses are often used poorly by students to address their research question. Quite often, SWOT analyses simply represent the personal opinions of the candidate without adequate data or evidence. In addition, there is often a lack of proper referencing of a SWOT analysis in the IA.
Tip 2: STEEPLE, Citing, Word Count, Appendix
Tip 2: STEEPLE, Citing, Word Count, Appendix
It is not always a straightforward task to classify factors into a STEEPLE analysis framework. For example, changes in an economy's tax system or interest rates may be considered a political, legal, or economic factor. This is rather immaterial, so long as you can justify the reasoning.
For the IA, it is vital that you cite and reference your sources - this applies to all the points in a SWOT analysis or STEEPLE analysis (if used).
Finally, remember that any actual analysis is considered as part of the word count, and must not be placed in the appendices of the IA. Note that if it is not permissible for candidates to include a full STEEPLE or SWOT analysis in the appendices and expect the moderator to read this. It is, however, acceptable if the relevant parts of the STEEPLE or SWOT analysis are extracted and used in the written commentary itself.
In all cases, the items placed in the appendices are not read per se and cannot be used to circumvent the word count limit.
If you use STEEPLE you can check out this website: https://pestleanalysis.com/
includes ready-made PEST analyses (and some SWOT analyses too) for numerous well-known companies that may be applicable to the Internal Assessment.
Tip 3: Force Field Analysis
Tip 3: Force Field Analysis
Too often, HL students use force field analysis incorrectly in their Internal Assessment. Many students use this situational and decision-making tool to list the advantages and disadvantages of a certain project or strategic choice, and then proceed to personally assign the statistical weights to the driving and restraining forces in the analysis. The weights in a force field analysis are frequently unsubstantiated or even missing. Instead, the weights must come from the perspective of the organization being investigated, not from the student (especially when there are no explanations provided for the allocation of these weights).
Tip 4: Use the Tools Effectively to Answer the RQ
Tip 4: Use the Tools Effectively to Answer the RQ
Whichever tools or theories are used in the IA (and these do not have to be only those listed above), you must ensure that these are applied to the context of the business organization selected for the IA and that they are used to help answer the research question.
For example, far too many students use SWOT and PEST(STEEPLE) analysis in the IA without real purpose or value. These tools are rarely used effectively to answer the research question in the IA. So, unless the tools and theories are directly relevant and add value to the IA, you should avoid using them in the IA.
Simply referring to or using terminology, tools, theories, and techniques does not justify the full 4 marks for Assessment Criterion C (Selection and application of tools and theories). Instead, it is about how the appropriate terminology, tools, theories, and techniques are applied competently and effectively to the research question.
As always, what is appropriate for a particular IA really depends on the research question. It’s like saying, I have a hammer and spanner - can I use them? Not if you’re trying to change a lightbulb! Students must be advised to use the most appropriate tools and theories that address the specific issue being investigated.
Website to draw diagrams online:
https://app.diagrams.net/
IA Table of Contents
IA Table of Contents
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