IB Business Management: 1.3, 1.4, 1.5, 1.6

Business Objectives

Business Objectives

Articulated, measurable targets necessary to achieve a business's long-term goals, categorized into strategic, tactical, and operational objectives.

SMART Objectives

Specific, Measurable, Achievable, Relevant, Time-specific criteria for effective goal setting.

Business Strategies

Plans to achieve strategic objectives, involving careful analysis, planning, implementation, and evaluation.

Stakeholders

Individuals or groups with a direct interest in a business, categorized as internal and external stakeholders.

SWOT Analysis

Examination of Strengths, Weaknesses, Opportunities, and Threats to aid strategic planning and market positioning.

Ansoff Matrix

Tool for assessing growth strategies based on market and product considerations, including Market Penetration, Market Development, Product Development, and Diversification.

PESTLE Analysis

Examination of Political, Economic, Social, Technological, Legal, and Ethical factors influencing business operations and growth.

Scale of operations

The size or volume of output of a business.

Economies of scale

The reduction in average unit cost as a business increases in size.

Diseconomies of scale

The increase in per unit production cost as output or activity increases.

Efficiency

Measured in terms of costs of production per unit.

Fixed costs

Costs that do not change according to the amount of goods or services produced.

Variable costs

Costs that increase or decrease according to the amount of goods or services produced.

Average costs

The total cost per unit produced.

Internal economies of scale

Advantages gained by a business due to its size or scale.

External economies of scale

Benefits that occur outside a business due to its size or scale.

Internal diseconomies of scale

Disadvantages experienced within a business due to its size or scale.

External diseconomies of scale

Disadvantages experienced outside a business due to its size or scale.

Internal growth

Business expansion relying on its own resources and capabilities.

External growth

Business expansion with resources not developed internally.

Mergers and acquisitions

Methods of external growth involving combining or acquiring other companies.

Joint ventures

Cooperation between businesses to enhance value without creating a new entity.

Strategic alliances

Legal cooperation between businesses to enhance value without creating a new entity.

Franchising

Distributing products or services by selling the right to use a brand to franchisees.

Globalisation

Integration of regional economies into a global unit.

Multinational companies (MNCs)

Companies operating in two or more countries.