IB Diploma · session May 2027
Business Management
Guide first assessed in May 2024.
7 subtopics34 diagrams34,187 words
0 of 7 read
The higher-level subtopics are hidden, and so is the higher-level material inside the rest.
Unit 1 Introduction to business managementTest setThe theoryWorked examplesPractice testMark scheme
- 1.1 What is a business? what is a business, where does it sit in the economy, and what does it take to start one and keep it alive?
- 1.2 Types of business entities who owns a business, who controls it, who pays if it fails, and where does its surplus go?
- 1.3 Business objectives what is a business trying to achieve, how does it turn that into targets people can act on, and how far should it look beyond profit?
Unit 3 Finance and accounts
- 3.1 Introduction to finance why does a business need money, and why does it matter which kind of spending that money pays for?
- 3.2 Sources of finance where can a business get money from, and how does it choose the right source for the job?
- 3.3 Costs and revenues what does it cost a business to produce, where does its money come from, and why does the difference decide whether it survives?
- 3.4 Final accounts how does a business show, in two pages, how it performed over a year and what it is worth on one day, and who needs to know?
Nothing matches that.
The course in one page
The course in one page. Standard and higher level, for the guide first assessed in May 2024 — the guide May 2027 candidates sit.
What the course is
Business management studies how organisations make decisions under constraint. It is applied rather than theoretical: nearly every mark depends on you taking a general tool and using it on a specific business.
Four concepts run through the whole course and are examinable in their own right: creativity · change · ethics · sustainability.
The five units
| Unit | |
|---|---|
| 1 | Introduction to business management — sectors, ownership, objectives, stakeholders, growth |
| 2 | Human resource management — organisation, leadership, motivation, culture, industrial relations |
| 3 | Finance and accounts — sources of finance, costs, accounts, ratios, cash flow, investment appraisal |
| 4 | Marketing — the marketing mix, market research, positioning, international marketing |
| 5 | Operations management — production methods, quality, location, supply chain, R&D |
The Business Management Toolkit
The 2024 guide added a toolkit of 15 tools — SWOT, Ansoff, STEEPLE, BCG matrix, business plan, circular business models, decision trees, descriptive statistics, fishbone, force field analysis, gap analysis, Hofstede, position map, and the rest — which are examinable in any unit.
Do not treat these as decoration to be name-dropped. A question rewards using a tool to reach a conclusion about the specific business in front of you, not reciting what the tool is. A SWOT that lists four generic bullet points scores far less than two well-chosen points tied to the stimulus.
The papers
| Standard level | Higher level | |
|---|---|---|
| Paper 1: pre-released case study | 90 min, 30 marks | 90 min, 30 marks |
| Paper 2 | 90 min, 40 marks | 105 min, 50 marks |
| Paper 3: social enterprise | — | 75 min, 25 marks |
Paper 1 is set on a pre-released case study issued before the session. You will have had it for weeks. This is the most preparable assessment in the DP: research the industry, learn the numbers, anticipate the tools. Candidates who read it once and rely on the exam-day extract lose marks they were handed in advance.
Paper 2 is unseen stimulus plus quantitative questions. Paper 3 is higher level only and concerns a social enterprise, requiring a recommendation.
How it is marked
Extended answers use mark bands. What moves you up them:
Application, every time. The single biggest differentiator in this subject. "Motivation improves productivity" is theory. "Because Farrow's staff are paid piece-rate and turnover is 30 %, introducing…" is application. Name the business. Use its numbers.
Balance before judgement. Evaluate, discuss and recommend require the other side on the page before you conclude.
Show quantitative working. Ratio and account questions carry method marks, and the interpretation is usually worth more than the calculation.
A recommendation must recommend. State which option, and why that one rather than the other.
Assessment objectives
| Roughly | ||
|---|---|---|
| AO1 | Knowledge and understanding | define, state, outline |
| AO2 | Application and analysis | apply theory to the given organisation |
| AO3 | Synthesis and evaluation | evaluate, recommend, justify |
| AO4 | Use and application of skills | calculate, construct, interpret data |
Command terms, and what each one obliges you to write
| Term | What must appear on the page |
|---|---|
| Define / State | The answer alone. |
| Outline / Describe | A brief account. No why. |
| Distinguish | Differences set against each other. |
| Explain | The reason or mechanism, applied to the business. |
| Analyse | Break it down and show cause and effect for this organisation. |
| Comment on | An informed judgement about what the data or situation shows. |
| Calculate | A numerical answer with working and units. |
| Construct | Draw the table, chart or account. |
| Prepare | Produce a financial statement in correct format. |
| Discuss | A balanced review of more than one view. |
| Evaluate | Strengths and limitations, then a supported judgement. |
| Examine | Consider the issue and its underlying assumptions. |
| Recommend | Choose an option and justify the choice against the alternative. |
| Justify | Reasons supporting a position. |
| To what extent | A judgement with a degree attached. |
Educerie · written from the published IB Diploma Programme structure for Business Management, first assessment 2024. Original text. Paper durations and mark totals checked against the May 2027 examination schedule. Last reviewed 5 September 2026.