Case Study Skandvig Terra PLC (SVT) May 2023

Possible Questions

Unit 1: Business organization and environment

Questions SL/HL Marks

Section 1.1: Introduction to Business Management
In the context of business functions define human resources (line 59). 2
In the context of business functions define marketing (line 59). 2
Describe the nature of business activity in one of the sectors in which SVT 2
operates.
Define the term “business” (line 51). 2
Define the term “entrepreneur” (line 117). 2
Explain the importance of operations as a business function at SVT (line 57). 4
In the context of SVT, distinguish between operating in the primary sector and the 4
secondary sector.
In the context of SVT, explain the role of businesses in combining human, physical 4
and financial resources to create goods and services.
In the context of SVT, distinguish between entrepreneur and intrapreneur. 4
SVT was originally set up as a family business, explain two problems SVT may have 4
faced when it was set up.

Section 1.2: Types of organizations

Define the term Public Limited Company. 2
In the context of SVT distinguish between operating in the private sector and in 4
the public sector.
Explain two advantages for SVT being a public limited company (line 1). 4
In the context of SVT, distinguish between non-governmental organizations and 4
charities (line 104).
Examine two advantages and one disadvantage of SVT being structured as public 6
limited company (line 1).

Section 1.3: Organizational Objectives

Define the term vision statement (line 2). 2
Define the term Corporate Social Responsibility (line 95). 2
Define the term objective (line 74). 2
Define the term aim (line 92). 2
In the context of SVT, distinguish between mission statement and vision
statement.
Explain the importance of having clear objectives for SVT (line 74). 4
Explain one advantage and one disadvantage of having a vision statement (line 4
116).
Explain the need for SVT to change its objectives in response to changes in the 4
external environment.
In the context of SVT, compare and contrast the objectives of non-profit 4
organizations and the objectives of for-profit organizations.
Explain two advantages of setting ethical objectives. 4
Explain one advantage and one disadvantage of setting ethical objectives. 4
Explain the importance of Corporate Social Responsibility for SVT (line 95). 6
Explain two benefits and one limitation to SVT of having a corporate social 6
responsibility (CSR) policy (line 95).

Gema Quintanilla (ACS International School Egham) 1

 Prepare a SWOT analysis for SVT. 6
Using a SWOT framework, examine the strengths and weaknesses of SVT. 6
Using the Ansoff Matrix, evaluate different growth strategies seen at SVT. 10

Section 1.4: Stakeholders

Define the term stakeholder (line 130). 2
Define the term employees (line 22). 2
Define the term director (line 15). 2
Define the term supplier (line 32). 2
Define the term competitor (rival businesses, line 54) 2
Identify two internal stakeholders of SVT. 2
Identify two external stakeholders of SVT. 2
In the context of SVT, distinguish between internal stakeholders and external 4
stakeholders.
Explain the interests of two of SVT’s internal stakeholders. 4
Explain the interests of two of SVT’s external stakeholders. 4
In the context of SVT, examine possible areas of conflict between the various 6
stakeholders. (Make sure you identify the conflict between two stakeholders –
individuals or groups. Then, explain the conflict and apply it to SVT).
In the context of SVT, examine possible areas of mutual benefit between 6
stakeholders. (Make sure you identify the benefits between two stakeholders –
individuals or groups. Then, explain the benefits and apply it to SVT).

Section 1.5: External environment

Define the term external environment (line 21). 2
Describe two STEEPLE factors that have impacted SVT. 4
Examine how changes in the external environment create both opportunities and 6
threats for SVT.
Prepare a STEEPLE analysis for SVT using four factors. 6
Explain how changes in social factors create opportunities and threats for SVT. 6
Explain how changes in environmental factors create opportunities and threats for 6
SVT.

Section 1.6: Growth and Evolution

Define the term growth (line 32). 2
Define the term economies of scale (line 57). 2
Identify two methods of internal growth for SVT (line 31). 2
Identify two methods of external growth for SVT (line 90). 2
Describe two types of economies of scale that SVT could achieve through growth 4
(line 57).
With reference to SVT distinguish between internal and external growth (line 31). 4
Explain one advantage and one disadvantage of internal growth for SVT. 4
Explain two advantages of internal growth for SVT. 4
Explain two advantages of external growth for SVT. 4
Analyse the use of mergers and acquisitions as a method of external growth for 6
SVT (line 9).
Analyse the use of takeover as a method of external growth for SVT (line 49). 6
Explain the merits of a large organization such as SVT. 6

Section 1.7: Organizational Planning Tools

Gema Quintanilla (ACS International School Egham) 2

 Draw a fishbone diagram to identify the causes of employees’ resistance to change HL only 4
at H4 PLC.
Using a force field analysis evaluate the decision of the modernization programme HL only 10
of the former H4 factories (more data needed).
Using a decision tree evaluate possible growth strategies (more data needed). HL only 10

Gema Quintanilla (ACS International School Egham) 3

Unit 2: Human Resource Management

Questions SL/HL Marks

Section 2.1: Functions and Evolution of HRM
Define the term redundancy (line 63). 2
Define the term recruitment (line 66). 2
Define the term induction training (line 70). 2
Define the term labour turnover (line 76). 2
Define job vacancies (line 66). 2
Explain two functions of the human resources department at SVT. 4
Outline two internal factors that may influence human resource planning at SVT. 4
Outline two external factors that may influence human resource planning at SVT. 4
With reference to SVT, distinguish between on-the-job training and off the job. 4
Explain one advantage and one disadvantage of training employees at SVT. 4
Explain one advantage and one disadvantage of induction training for H4 4
employees (line 70).
Explain how SVT can use formative and summative appraisals. 4
Distinguish between dismissals and redundancies. 4
Outline the common steps in the process of recruiting employees at SVT. 4
Describe two common steps of the redundancy process that SVT should have 4
followed with H4 existing employees.

Section 2.2: Organizational structure

Define the term organizational structure (line 10). 2
In the context of SVT distinguish between being organized by product and being 4
organized by function.
In the context of SVT distinguish between flat organizational structure and tall 4
organizational structure (line 15).
In the context of SVT, explain the importance of core employees to the 4
organization.
In the context of SVT, explain the importance of peripheral workers to the 4
organization (line 61).
Explain how Handy’s “Shamrock organization” could be applied to SVT. 6
SVT operates in over 20 countries, examine how cultural differences may impact 6
on communication at SVT.

Section 2.3: Leadership and Management

Define the term leadership (line 19) 2
In the context of SVT, distinguish between leadership and management. 4
Explain one advantage and one disadvantage of Yanick’s leadership style (line 19). 4
Explain one advantage and one disadvantage of Ariadna’s leadership style (line 4
23).
Distinguish between situational leadership style and autocratic leadership style. 4
Examine the effectiveness of Ariadna’s leadership style for SVT. 6

Section 2.4: Motivation

Define the term “needs” (line 124). 2
Explain how non-financial rewards can affect job satisfaction and productivity of 4
SVT’s employees.
Describe two examples of financial rewards that SVT uses. 4

Gema Quintanilla (ACS International School Egham) 4

 Using “one motivation theory” examine the factors that affect the level of 6
employee’s motivation in the Consumer Product Division.
Using “one motivation theory” analyze the motivation of SVT’s engineering 6
division employees.
Using appropriate motivational theory, explain how the redundancies at H4 (line 6
63) are likely to affect the motivation of the H4’s employees.
Analyse how financial and non-financial rewards may affect the level of staff 6
motivation, job satisfaction and productivity at SVT.

Section 2.5: Organizational culture (HL only)

In the context of SVT, describe the meaning of organizational culture. HL only 4
Outline two elements of organizational culture at SVT. HL only 4
Explain how Ariadne’s autocratic leadership style may influence SVT’s corporate HL only 4
culture.
Explain how Yannick’s situational leadership style may influence SVT’s corporate HL only 4
culture.
Discuss the potential cultural clashes at the Engineering division after H4’s HL only 10
takeover.

Section 2.6: Employer and employee relations (HL only)

Outline two possible sources of conflict in the workplace at SVT. HL only 4
Explain two methods of conflict resolution at SVT. HL only 4
Explain two reasons for resistance to change at H4. HL only 4
Analyse human resource strategies SVT can employ to reduce the HL only 6
resistance to change in H4.
Evaluate approaches to conflict resolution that could be used to solve possible HL only 10
conflicts that may arise at SVT when the board of directors implement decisions in
key areas (line 140) Additional info needed.

Gema Quintanilla (ACS International School Egham) 5

Unit 3: Finance

Questions SL/HL Marks

Section 3.1: Sources of finance
Define government grants (line 82). 2
Define the term subsidies (line 128) 2
Apart from donations, outline two other sources of finance for charities (line 104). 2
Suggest two sources of finance that SVT may have used to takeover H4. 2
In the context on SVT, distinguish between capital expenditure and revenue 4
expenditure.
In the context on SVT, distinguish between internal and external sources of 4
finance.
Explain one advantage and one disadvantage of SVT using internal sources of 4
finance.

Section 3.2: Costs and revenues

Define the term unit costs (line 75). 2
Define the term sales revenue (line 45). 2
Identify two revenue streams for SVT (line 37). 2
In the context of SVT distinguish between direct and overhead costs.
In the context of SVT distinguish between fixed and variable costs.

Section 3.3: Break-even analysis

Define the term contribution (line 88). 2
Define the term profit (line 88). 2
Board members haven’t decided yet on a pricing strategy for WF15, explain how a 4
change in price of the WF15 may affect the break-even point, profit or loss (line
127).

Section 3.4: Final Accounts

Define the term dividends (line 89). 2
Define the term equipment and machinery (line 47). 2
Analyse the purpose of final accounts to two stakeholders of SVT. 6
Construct a profit and loss account for SVT (quantitative data needed). 6
Construct a balance sheet for SVT (quantitative data needed). 6

Section 3.5: Profitability and Liquidity ratio analysis

Define the term profitability (line 130) 2
Calculate different ratios.
Examine strategies to improve the ratios.
Explain why profitability ratios are useful for SVT. 4
Explain why liquidity ratios are useful for SVT. 4
Explain why SVT’s stakeholders may be interested on ROCE ratio. 4

Section 3.6: Efficiency ratio analysis

Calculate different ratios. HL only
Examine strategies to improve the ratios. HL only
Explain why efficiency ratios are useful for SVT. HL only 4

Gema Quintanilla (ACS International School Egham) 6

 Section 3.7: Cash Flow
In the context of SVT’s Consumer Products Division distinguish between inflows 4
and outflows
In the context of SVT’s distinguish between profits and cashflow 4
Explain one advantage and one disadvantage of cash flow forecasting for SVT. 4
Construct a cash flow forecast (quantitative data needed) 6

Section 3.8: Investment Appraisal

Calculate the payback period for different options (Data required)
Calculate the average rate of return for different options (Data required)
Calculate the net present value for different options (Data required) HL only
SVT has expanded into different business sectors (line 7), explain the usefulness of 4
PBP as a decision-making tool for SVT.
SVT has expanded into different business sectors (line 7), explain the usefulness of 4
ARR as a decision-making tool for SVT.

Section 3.9: Budgets

Define budget (line 94) HL only 2
Explain the importance of having a marketing budget for SVT (line 94) HL only 4
In the context of SVT, explain the difference between cost and profit centres HL only 4
Prepare a variance analysis (data required) HL only 4

Unit 4: Marketing

Questions SL/HL Marks

Section 4.1: The role of marketing
Define the term marketing (line 94). 2
Define the term market share (line 90). 2
Define the term market growth (line 39). 2
Distinguish between customers and consumers (line 14) 2
Define market leader (industry leader) (line 23) 2
Calculate SVT’s market share in the water filter industry (more data required). 2
Describe the relation of the marketing department (line 134) with another SVT’s 2
business function.
Examine the marketing objectives of a for profit organization and non-profit 6
organizations.

Section 4.2: Marketing planning

In the context of SVT, explain the role of marketing planning 4
Explain how having a USP can help WF15 to differentiate itself from other 4
products in the same industry.
In the context of SVT’s Consumer Product Division, distinguish between market 4
segments and target markets.
In the context of SV’s Engineering Division, explain the importance of having a USP 4

Section 4.3: Sales Forecasting

In the context of SVT, explain two benefits of sales forecasting 2
In the context of SVT, explain two limitations of sales forecasting 2

Gema Quintanilla (ACS International School Egham) 7

 Section 4.4: Market Research
Define the term market research (line 113). 2
Define the term secondary market research (line 134). 2
Identify two methods of primary market research that Jayne could have carried 2
out during her trip in Sudan (line 108-113).
Jayne conducted market research in Sudan, (line 108-113), explain two reasons 2
why market research was carried out.
In the context of SVT, distinguish between quantitative and qualitative research 4
Explain two advantages and one disadvantage of using primary market research 6
for SVT.
Explain two advantages and one disadvantage of using secondary market research 6
for SVT (line 134).

Section 4.5: The 4 P’s

Define the term product (line 8). 2
Define the term product range (line 49) 2
Define the term social media (line 138). 2
Define the term distribution (line 29) 2
Define the term advertise (line 69) 2
Define the term brand (line 92) 2
Draw and label a product life cycle for WH15 2
Explain the position of WH15 on the product life cycle 2
Explain the relationship between WH15’s product life cycle, investment, profit and 4
cash flow.
In the context of SVT, distinguish between goods and services. 4
Apply the BCG matrix to SVT’s product portfolio. 4
Explain two suitable pricing strategies that SVT can use for the WF15 water 4
purifier.
In the context of SVT, distinguish between above the line and below the line
promotion for WH15 (line 134-138)
Explain the impact of changing technologies on promotional strategies. 6
Analyse the importance of branding for SVT’s consumer product division. 6
Analyse two suitable distribution channels for WH15 (line 132). 6

Section 4.6: The extended Marketing Mix

Section 4.7: International Marketing

In the context of SVT, explain two methods they could use to enter a country that HL only 4
they do not operate in.
Examine one advantages and one disadvantage of SVT using international HL only 4
marketing.
Analyse the opportunities and threats posed to SVT by entry into international HL only 6
markets.
In the context of SVT, analyze the role of cultural differences in international HL only 6
marketing.

Section 4.8: E-commerce

Gema Quintanilla (ACS International School Egham) 8

Unit 5: Operations Management

Questions SL/HL Marks

Section 5.1: The role of operations management
Define the term sustainability. 2
Define the term operations. 2
Analyse the importance of the triple bottom line (ecological, social and economic) 6
sustainability for SVT.

Section 5.2: Production Methods

Define the term production (line 1). 2

Section 5.3: Lean Production and quality management

Define the term quality HL only 2

Section 5.4: Location

Explain why the location decision is so important for organization such as SVT’s. 4

Section 5.5: Production planning

Define capacity (line 79) HL only 2
Define "productivity per employee" (line 24). HL only 2
In the context of SVT, explain two benefits of having high productivity per HL only 4
employee (line 24).

Section 5.6: Research and development

Define innovation (line 71). HL only 2
Explain the importance of innovation for a business such as SVT (line71). HL only 4
Explain two types of innovation at SVT. HL only 4
In the context of SVT, distinguish between adaptive creativity and innovative HL only 4
creativity.
In the context of SVT, explain the cost and benefits of investment in research and HL only 6
development (R&D).

Section 5.7: Crisis management and contingency planning

In the context of SVT, explain the difference between crisis management and HL only 4
contingency planning.

Gema Quintanilla (ACS International School Egham) 9