BM-UNIT 1: Introduction to Business Management

UNIT 1: Business Organization and Environment

Unit 1 covers traditional business areas such as what is business,  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, CSR and the different ways a business can grow.

Conceptual understandings (by the IBO):

• 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

Suggested business management tools to integrate (proposed by the IBO) :

SWOT analysis, Ansoff Matrix, STEEPLE analysis, business plan, decision trees, circular business models, Porter’s generic strategies (HL only), simple linear regression (HL only)

Tip! At the beginning of each presentation there are links to the proposed business management tools. However, it is just a recommendation, it is up to each teacher to decide on that.

Suggested inquiry statements to explore (by the IBO)

• How corporate social responsibility (CSR) could impact business creativity.

• Why business objectives might change over time.

• How ethical behaviour contributes to business sustainability.

• Why change could bring conflict among stakeholders.

• How businesses could benefit from adopting circular business models.

Suggested theory of knowledge questions (by the IBO)

• Is the depiction of “business management” in this guide an accurate model of the contemporary 

academic discipline of business management and today’s business environment?

• If the effects of a mission statement cannot be easily measured, does this mean that they are 

worthless?

• Do CEOs have different ethical obligations and responsibilities compared to their employees?

• Does competition between companies help or hinder the production of knowledge?

• Is it possible to discover laws of business in the same way that the natural sciences discover laws of 

nature?