IB Business Management: Business Organization & Environment Revision

Business Organization & Environment is a core part of IB Business Management. Revise the key concepts and common mistakes below, then lock them in with the free games.

Key concepts

SWOTStrengths, Weaknesses, Opportunities, Threats

PESTLEPolitical, Economic, Social, Tech, Legal, Environ.

StrengthInternal positive: brand, patents, cash

WeaknessInternal negative: high debt, weak skills

OpportunityExternal positive: new market, tech change

ThreatExternal negative: regulation, recession

Market penetrationExisting product in existing market

Market developmentExisting product in new market

Product developmentNew product in existing market

DiversificationNew product in new market — highest risk

Economies of scaleFalling unit cost as output rises

Diseconomies of scaleRising unit cost from coordination failure

Primary sectorExtraction of raw materials (farming, mining)

Secondary sectorManufacturing and processing of goods

Common mistakes to avoid

Questions where students often pick the tempting wrong answer — make sure you know the right one:

Do all businesses aim only to maximise profit?✗ Yes, profit is every business's only goal. ✓ No — aims vary: survival, growth, market share, social aims.

Does a sole trader have limited liability?✗ Yes, sole traders have limited liability. ✓ No — sole traders have unlimited liability for business debts.

Practise Business Organization & Environment — free games

Test yourself with these quick revision games for this topic:

▶ Two Truths, One Lie ▶ Reveal Race ▶ Connections Grid ▶ Falling Words ▶ Word Web

See all 17 games in the Subjects Arcade →

Business Organization & Environment

Key concepts

Common mistakes to avoid

Practise Business Organization & Environment — free games

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