Unit 1 - Introduction to BM
Unit 1 - Introduction to Business Management
The first unit of the IB Business Management syllabus provides the introductory context to business management. Unit 1 examines both the internal and external business environments, using a range of business management tools, theories, and techniques. These include types of business organizations (both for-profit and non-profit), organizational objectives, stakeholders, growth and evolution (both internal and external growth options), as well as the role of multinational companies.
The recommended teaching hours from the IB for Unit 1 of the Business Management syllabus are as follows:
- SL = 20 hours
- HL = 20 hours
The IB Business Management syllabus content for Unit 1 is outlined below. There are six topics in Unit 1: Introduction to Business Management.
Please note that there is no "HL only" content in Unit 1 of the syllabus.
Introduction to Business Management and conceptual understandings (from the DP Business Management guide):
- Change is essential for businesses to achieve their desired aims.
- Creative business planning can lead to organizational success.
- Ethical business behaviour improves a business’ image as well as customer loyalty.
- Sustainable business practices can enhance a business’ existence.
Teachers and students can download a revision poster for Unit 1 by clicking on the icon below. Many thanks to Saif Nidal Attieh and his students from the Class of 2027 at Modern Montessori School, Amman, in Jordan, for creating and sharing this with the InThinking Business Management community!
For teachers wishing to print these for classroom displays, we strongly recommend printing these in A3 format.
Unit 1.1 - What is a business?
This section of the syllabus covers the following assessment objectives:
- The nature of business (AO1)
- Primary, secondary, tertiary and quaternary sectors (AO2)
- Entrepreneurship (AO2)*
- Challenges and opportunities for starting up a business (AO2)
* This topic does not appear in the syllabus released in February 2022, but has been included in the revised version published in May 2022.
Unit 1.2 - Types of business entities
This section of the syllabus covers the following assessment objectives:
- Distinction between the private and the public sectors (AO2)
- The main features of the following types of organizations: (i) sole traders, (ii) partnerships, (iii) privately held companies, and (iv) publicly held companies (AO3)
- The main features of the following types of for-profit social enterprises: (i) private sector companies, (ii) public sector companies, and (iii) cooperatives (AO3)
- The main features of the following type of non-profit social enterprise: non-governmental organizations (NGOs) (AO3)
Unit 1.3 - Business objectives
This section of the syllabus covers the following assessment objectives:
- Vision statement and mission statement (AO2)
- Common business objectives, including: (i) growth, (ii) profit, (iii) protecting shareholder value, and (iv) ethical objectives (AO2)
- Strategic and tactical objectives (AO3)
- Corporate social responsibility (CSR) (AO3)
This section of the syllabus covers the following assessment objectives:
- Internal stakeholders (AO2)
- External stakeholders (AO2)
- Conflict between stakeholders (AO2)
Unit 1.5 - Growth and evolution
This section of the syllabus covers the following assessment objectives:
- Internal and external economies and diseconomies of scale (AO2)
- The difference between internal and external growth (AO2)
- Reasons for businesses to grow (AO3)
- Reasons for businesses to stay small (AO3)
- External growth methods (AO3):
(i) Mergers and acquisitions (M&As)
(ii) Takeovers
(iii) Joint ventures
(iv) Strategic alliances, and
(v) Franchising.
Unit 1.6 - Multinational companies (MNCs)
This section of the syllabus covers the following assessment objective:
