IB Docs (2) Team
Revision & Exams - Top tips
Top exam and revision tips for IB Business Management
"I have nothing in common with lazy people who blame others for their lack of success. Great things come from hard work and perseverance. No excuses - dedication sees dreams come true."
- Kobe Bryant (1978 - 2020), US professional basketball player
Revision Tip 1 - Learn your key terms
Keep a glossary of key terms from the IB Business Management course - Too often, students are imprecise with their definitions. As your students work through the IB BM course, get them to keep a glossary of new key terms or phrases – written in their own words. The glossary can be update when you introduce new tools, theories and techniques from the syllabus.
For a bit more fun, get your students to produce their own key terms crosswords, word searches, or true or false vocabulary quizzes to help reinforce their knowledge of the main key terms and definitions.
This website contains a glossary of key terms at the end of each unit, covering over 750 key terms that have been defined. Students must spend adequate time learning and reviewing these key terms.
ATL Activity 1 - Confusing Pairs
Students need to be learn their key terms (definitions) from the IB Business Management syllabus. The list below are confusing pairs of key terms - ask students to define and distinguish between these pairs:
Advertising | Promotion |
Bankruptcy | Insolvency |
Business | Company |
Capital employed | Loan capital |
Capital expenditure | Revenue expenditure |
Cash | Sales revenue |
Cash flow cycle | Cash flow forecast |
Data | Information |
Delayering | Redundancies |
Direct cost | Variable cost |
Dismissal | Redundancy |
Job enrichment | Empowerment |
Job enrichment | Job enlargement |
Joint venture | Strategic alliance |
Market share | Market growth |
Marketing mix | Marketing strategy |
Non-governmental organization (NGO) | Charity |
Offshoring | Outsourcing |
Performance-related pay (PRP) | Profit-related pay |
Place | Location |
Price | Cost |
Profit | Revenue |
Profit | Surplus |
Project-based organization | Matrix structure |
Public sector | Publicly held company |
Revenue streams | Sources of finance |
Salaries | Wages |
Sales revenue | Cash inflows |
Span of control | Chain of command |
Stakeholders | Shareholders |
| Strategy | Tactic |
| Strike action | Industrial action |
| Vision statement | Mission statement |
Top tip! - The EEE (triple E) technique
When defining key terms, although it is not usually required, it can be useful if students provide one of the following three E's:
Example
Explanation / exemplify (briefly only)
Equation (where applicable)
Take for example the following question that appeared in November 2020 SL Paper 2, Question 2 (a).
2. (a) Define the term price discrimination. [2 marks]
The mark scheme gave the following definition:
"Price discrimination is when a firm charges a different price to different groups of consumers for an identical good or service."
Award [1 mark] for a basic definition conveying the idea that it allows a business to sell the same goods/services at different prices. This is what the above example actually shows.
Award an additional [1 mark] for stating the differing prices are for different groups of consumers that can be separated in some way. Note that the above definition in the mark scheme does not include such an example, yet the mark scheme goes on to state:
A candidate may achieve the second mark through the use of a good exemplar, e.g. by explaining that a cinema charges higher prices for adults than for children.
Hence, the use of simple, but realistic, examples in definitions can be useful in certain cases.
ATL Activity 2 - 5-4-3-2-1 Vocab blanks
Fill in the missing blanks with plausible answers for key terms in each of the following cases.
- State five words that can come after the word 'Market .....'
State four words that can come after the word 'Brand .....'
State three words that can come after the word 'Target .....'
State two words that can come after the word 'Public .....'
State one word that can come after the word 'Mass .....'
Answers
Note: possible answers are included here for illustrative purpose; accept any other relevant key terms that students might provide.
1) State five words that can come after the word 'Market'
Market development, Market growth, Market leader, Market orientation (or market oriented), Market penetration, Market research, Market segment, Market share, Market size ...
2) State four words that can come after the word 'Brand'
Brand awareness, Brand development, Brand loyalty, Brand name, Brand recognition, Brand value
3) State three words that can come after the word 'Target'
Target market, Target price, Target profit, Target profit output ... (the latter three are covered in the topic of break-even analysis)
4) State two words that can come after the word 'Public'
Public sector, Public limited company, Public-Private Partnerships ...
5) State one word that can come after the word 'Mass'
Mass market, Mass production ...
ATL Activity 3 - Abbreviations Galore
Not only are there around 640 key terms in the IB Business Management course, but there are plenty of abbreviations that students also need to know. For the list below, ask students to:
State what these abbreviation stands for.
Define the key term (the ones in italics are HL only).
ARR Average rate of return | ATL Above the line (promotion) |
NCF Net cash flow | WOM Word of mouth (promotion or marketing) |
ROCE Return on capital employed | B2B Business to business |
GPM Gross profit margin | SMM Social media marketing |
COGS Cost of goods sold | MNC Multinational company (or multinational corporation) |
COS Cost of sales | AVC Average variable costs |
PLC Public limited company (or product life cycle) | IPO Initial public offering |
C2C Consumer to consumer (or Cradle to Cradle) | IPR Intellectual property rights |
JIT Just in time | JIC Just in case |
CTM Cost to make | CTB Cost to buy |
B2C Business to Consumer | BTL Below the line (promotion) |
ATL Above the line (promotion) | BEQ Break-even quantity |
PRP Performance related pay | NVP Net present value |
Click here for the full glossary of key terms, arranged in order of the IB Business Management syllabus. Click here for the full glossary, arranged in alphabetical order.
Top tip! - Watch out for oxymora
A top tip for teachers - not only do confusing pairs (see above) cause problems for many students, also watch out for oxymora language and terminology used in IB Business Management as well as other words that seem to make little sense to non-native English speakers.
Examples of oxymora that might be used in an IB Business Management classroom, with references to the corporate world, might include:
Artificial intelligence
Business ethics
Constant change
Crisis planning
Negative growth
Negative profit
Non-profit organization
Old news
Paid volunteers
Profit and loss
Realistic estimates (extrapolation)
Redundant workers
Revenue expenditure
Unknown risks
Unbiased opinions (market research)
Unemployed workers
Work social
Zero-contract hours (employment law)
Revision Tip 2 - Practise your quantitative techniques
Both SL and HL IB Business Management students need to be familiar and competent with the use of quantitative techniques, especially as this is explicitly examined in Section A of Paper 2. Some examples of quantitative techniques from the syllabus are listed below. Click on the hyperlink to get to the relevant section of the website to revise these topics and have a go at the Question Bank Q&A for revision too. The topics in italics are HL Only.
Also, make sure you understand the purpose of these quantitative techniques, such as ratio analysis. For example, there is good reason why the gross profit margin (GPM) and net profit margin (NPM) are expressed to 2 decimal places - make sure you know why this is the case.
Also, for the calculation of the NPM ratio, be sure you understand why it considers the net profit before interest and tax (NPBIT) - don't just rote learn the formulae or refer to the formulae sheet without actual understanding of the ratio.
Using NPBIT is a better option (than net profit after interest and tax) to compare the actual operations of a business over time over between two or more businesses for benchmarking purposes. Using NPBIT also allows managers to compare the financial performance of the business and/or its numerous divisions in different countries without the impact of varying interest rates and the impact of taxes in the different countries of operation. Both interest rates and taxes are beyond the (cost) control of the business and do not directly reflect how well the business has been run.
Revision Tip 3 - Write fit for purpose paragraphs
Students can use the PEELS framework for writing their extended-response answers in both Paper 1 and Paper 2 in the IB Business Management exams.
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It is not uncommon for IB Business Management teachers to also teach IB Economics. The PEELS framework can also be used for those studying IB Economics too, for the extended response questions in both papers for SL students and all three papers for HL students.
For students writing their Extended Essay in Business Management, use the PEELS framework to ensure that each of your paragraphs are fit for purpose and directly address the research question.
Top tip!
Writing fit for purpose paragraphs also requires explanations or analyses that include the effects (impacts) or significance of the issues discussed. For top marks, you must include relevant Business Management terms, tools, theories, and/or techniques in a concise manner.
Revision Tip 4a - Practice your application skills with SPOTT analysis
S – Stakeholders
P – Product
O – Objectives
T – Type of business
T – Target market
Note: just mentioning the name of the organization in your responses is not considered as application.
Click the icon below to see a sample of SPOTT analysis that was created by Mr. van der Merwe's students. I have a feeling this is going to catch on across many schools...
Revision Tip 4b - Practice your application skills with "BAD" analysis
I am grateful to Michael Albanese, who teaches in the UK, for sharing this top tip for getting students to really understand the meaning of good analysis!
Students often struggle to fully apply their Business Management knowledge to a given case study, so to demonstrate the importance of good application, try the following:
1. Load this YouTube music clip of Michael Jackson’s Smooth Criminal with volume down to zero (no sound).
2. Then using a second tab, play this YouTube clip of Michael Jackson’s BAD, with volume up (to a sensible volume).
3. Switch back to the silent Smooth Criminal video whilst playing the BAD song.
4. After a short while, ask your students what the problem is.
They soon realise that the BAD song doesn't quite "go" with the Smooth Criminal video, in the same way that candidates often do not apply their knowledge to the actual exam answers. In other words, it doesn't matter how well you "dance", you have to dance to the tune of the case study!
Of course, if you and/or your students are not a fan of Michael Jackson, you can choose another pair of music videos in which they dance in time to the music. However, BAD was chosen deliberately to illustrate what bad analysis could look like for students.
It's a fun activity to get the message across - so, why not give it a go?!
Revision Tip 5 - Write analytical and evaluative responses
This is a top tip for writing answers to 6 and 10 mark questions, respectively: the DEAD and DEADER principles. Students can use this as a framework for their extended response answers in both Paper 1 and Paper 2.
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There is also good advice on how to develop your critical thinking skills in this article from the Times Educational Supplement.
Good trigger words to use to help with evaluation include:
However, ...
In the short term, ... but in the long term ...
In retrospect, ...
In theory, ... but in reality ...
It depends on ...
It is likely that ...
Nevertheless, ...
On the other hand ...
Overall, ...
- The most significant factor is, ... because ...
Common mistake
Avoid using these sorts of overly used phrases in your evaluation/conclusion:
"The business should not choose this option as it is too risky..." - Everything strategic decision that a business makes carries a degree of risk; even doing nothing carries some risk. Your evaluation/conclusion must explain why a particular option is a lower risk than the other, or why a higher risk strategy might actually be in the best interest of the business in the future.
"The advantages are larger than the disadvantages...” - This sort of statement is too vague on its own to secure the top marks. It is more effective to prioritise your arguments and justify which of the (dis)advantage is the most important in terms of leading the organization to achieve its business objectives.
Top tip!
Have a look at the typical 6-mark question below and consider how you would approach such questions.
Explain the importance of corporate social responsibility (CSR) to Company X. [6 marks]
Many students will start their answer on the lines of:
"The possible reasons why CSR is of importance to Company X include..."
The potential with this approach is that it can lead students to write descriptive and theoretical responses, whereas the demands of the question clearly require application to the case study or stimulus material provided in the exam. Instead, this about change the word "possible" to "likely" and this will encourage you to write your responses in the context of the case study:
"The likely reasons why CSR is of importance to Company X include..."
Revision Tip 6 - Structure the CUEGIS Essay (Paper 2, Section C) properly
This is a general essay framework for structuring the CUEGIS essay, which students might find useful for writing their answer for Section C of Paper 2: INVEST in your CUEGIS essay.
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There is more advice about the CUEGIS assessment here.
You can also download a useful CUEGIS poster here.
Revision Tip 7 - Write justified recommendations
Top Tip for Paper 1 (Section C) and Paper 2 (Section B, part D) - when making recommendations about business strategy, firms that don't consider these factors are LOSERS in the industry.
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Note: HL students - for the 20-mark essay (Paper 1 Section C), remember that every business decision has two implications - the impact on human resources (the firm's people) and finance (the firm's money).
Revision Tip 8 - Learn the meaning of the command terms
It is vital that you understand the different command terms used in the DP Business Management syllabus, as each command word in a question indicates the level of skills that is being assessed. Learning these command terms will helps you to comprehend the demands of the questions in the exams as well as improve the quality of your written answers. Knowing what is required of you in the exams will also help to improve your time management skills. There are 30 command terms used in DP Business Management.
The command terms are classified into 4 different assessment objectives (AO):
AO1 - Demonstration of knowledge and understanding
AO2 - Demonstration of application and analysis
AO3 - Demonstration of synthesis and evaluation
AO4 - Demonstration of a variety of appropriate skills, specific to the subject.
Define (AO1)
Describe (AO1)
Outline (AO1)
State (AO1)
Analyse (AO2)
Apply (AO2)
Comment (AO2)
Demonstrate (AO2)
Distinguish (AO2)
Explain (AO2)
Suggest (AO2)
Compare (AO3)
Compare and contrast (AO3)
Contrast (AO3)
Discuss (AO3)
Evaluate (AO3)
Examine (AO3)
Justify (AO3)
Recommend (AO3)
To what extent (AO3)
Annotate (AO4)
Calculate (AO4)
Complete (AO4)
Construct (AO4)
Determine (AO4)
Draw (AO4)
Identify (AO4)
Label (AO4)
Plot (AO4)
Prepare (AO4)
Take a look here for an explanation of each of the above 30 command terms used in IB Business Management.
Revision Tip 9 - Practise writing substantiated conclusions
Note tha AO3 questions require a well-argued and substantiated conclusion. Practice writing conclusions for your extended response answers based on the following tips:
Construct a balanced response to the question, issue, decision, or action that you have been asked to judge or evaluate.
Ensure your arguments are weighed in terms of their significance in addressing the question, i.e. arguments must be prioritised.
Conclusions and judgements are also required.
A good conclusion is one that is well substantiated.
Common mistake
Too many students start their extended response with a final recommendation and/or judgement. This is poor exam technique. You must present a balanced, two-sided argument to the question or issue at hand, prior to making a (justified) decision or judgement in the conclusion, rather than the introduction of the answer.
Revision Tip 10 - Take regular breaks when revising
Revising for extended periods of time, and very late at night (which will make you extremely sleep deprived) can be counterproductive. If you revise IB Business Management for consecutive 30-minute periods, you will improve your knowledge quite a bit in the first few sessions. However, if you continue to revise for additional 30-minute blocks, eventually the amount that you learn will increase by only a very small amount (if at all) because you will become too tired. It is more productive and effective to revise for shorter, but regular, time slots. Make sure you take regular breaks, and doing something you really enjoy, such as some light physical exercise or a short walk, so that you can recharge your batteries.
And in the words of Jack Ma, founder of Alibaba.com and someone who failed his English proficiency exams three times, "Never give up. Today is hard. Tomorrow will be worse. But the day after tomorrow, there will be sunshine."
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