Ib Business Toolkit Summary

BMT Items
Category Description
Tool
SWOT analysis considers the strengths, weaknesses, opportunities and threats

Situational of a business at a specific point in time. Strengths and weaknesses are internal
1 SWOT analysis
tool factors that influence the business, while opportunities and threats are
external factors which the business has no direct control over.
The Ansoff matrix is a framework of generic growth strategies for a business,

Decision- based of providing new or existing products in new or existing markets.
2 Ansoff's matrix
making tool These four generic growth strategies are categorised as (i) market penetration,
(ii) market development, (iii) product development, and (iv) diversification.
This framework considers factors in the external environment that affects a

business. STEEPLE refers to the social, technological, economic,
STEEPLE Situational
3 environmental, political, legal and ethical aspects of the external
analysis tool
environment. It provides an overview of or insight into these external factors
that are largely beyond the control of the organization.
Situational The Boston Consulting Group (BCG) matrix allows manager to assess their
Boston tool organization’s product portfolio based on measures of relative market share
4 Consulting and market growth. It helps with long-term strategic planning and decision-
Group matrix Decision- making based on four categories of products: (i) question marks, (ii) stars,
making tool (iii) cash cows, and (iv) dogs.
This is an official guiding document that provides details of the organization's

5 Business plan Planning tool strategic goals and how the business intends to achieve these, with reference
to the firm's human resources, finances, marketing, and operations
management. It is also commonly used to secure loans from financial lenders
as well as raising finance from investors.
This tool is a graphical representation of showing the probable outcomes of a

business decision, based on the likelihood of success or failure of such a
Decision-
6 Decision trees decision. The diagram shows the various choices faced by a business,
making tool
including estimates of the costs and benefits in order to determine the
probable risks of a specific courses of action.
This quantitative tool is used to summarise a given set of data to support

statistical and data analysis. The various techniques help to present a large
Descriptive Decision- amount of quantitative data in a simplified and more manageable format.
7
statistics making tool There are eight techniques specified for this tool: (i) Mean average, (ii) modal
average, (iii) median average, (iv), bar charts, (v) pie charts, (vi) infographics,
(vii) quartiles, and (viii) standard deviation.
These models explore how businesses create value for their customers and
other stakeholder groups whilst also reducing the environmental impacts of
Circular business Decision- their operations. There are five circular business models specified in the
8
models making tool syllabus: (i) circular supply models, (ii) resource recovery models, (iii)
product life extension models, (iv) sharing models, and (v) product service
system models.
This visual tool helps managers to plan and schedule different tasks or jobs
within a particular project. It illustrates the tasks or activities, their duration,
Gantt charts (HL
9 Planning tool and dependencies in order to determine the shortest time required to complete
only)
the project and helps managers to schedule resources to complete each task
and to keep the overall project on track to be completed on time.
This commonly used tool helps managers to explore how a business can gain
competitive advantages to help determine its strategic direction. These
Porter's generic generic strategies comprise of: (i) cost leadership (producing at a lower cost
Decision-
10 strategies (HL of competitors), (ii) differentiation (providing products with a distinctive or
making tool
only) unique selling point), and (iii) focus (selling specialized product aimed at
specific market segments). Focus strategies are further categorised as (i) cost
focus and (ii) differentiation focus.
This tool helps managers to understanding the cultural similarities and

differences that exist between and across different countries. This helps them
Hofstede's to determine more appropriate ways to conduct their operations given
cultural Situational different national and international settings. The tool suggests that countries
11
dimensions (HL tool can be categorised into one of six different cultural dimensions: (i) power
only) distance, (ii) individualism vs collectivism, (iii) masculinity vs femininity,
(iv) uncertainty avoidance, (v) long-term vs short-term orientation, and (vi)
indulgence vs restraint.
This visual and quantitative tool is used by managers to examine the forces
Situational for and against change to make more-informed business decisions. It is useful
Force field
tool during the planning and decision making stages of corporate strategy and
12 analysis (HL
Decision- change management. It provides an overview, in an easy to understand
only)
making tool format, by illustrating and adding statistical weights to each of the driving and
restraining forces identified in the analysis.
This planning tool helps project managers to schedule and oversee large and
complex projects to ensure efficient resource use and for the timely
Critical path completion of the project. It maps out all the individual tasks or activities
13 analysis (HL Planning tool needed to complete the project so that realistic deadlines for a project can be
only) set. The syllabus specifies HL students need to be able to: (i) complete and
analyse a critical path diagram. (ii) identify the critical path from a diagram,
and (iii) calculate the free and total float from a CPA diagram.
This quantitative tool is used to support business decision-making by
Contribution
Decision- enabling manager to analyse and evaluate different cost and revenue
14 (analysis) (HL
making tool situations. This tool comprises of three techniques in the syllabus: (i) make or
only)
buy analysis, (ii) contribution costing, and (iii) absorption costing.
This quantitative tool comprises of three techniques used to identify, describe,

Simple linear
Decision- and/or predict the relationship between dependent and independent variables
15 regression (HL
making tool under investigation. The three techniques covered in the course are: (i) scatter
only)
diagrams, (ii) line of best fit, and (iii) correlation/extrapolation.

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BMT Items

SWOT analysis considers the strengths, weaknesses, opportunities and threats

The Ansoff matrix is a framework of generic growth strategies for a business,

This framework considers factors in the external environment that affects a

This is an official guiding document that provides details of the organization's

This tool is a graphical representation of showing the probable outcomes of a

This quantitative tool is used to summarise a given set of data to support

This tool helps managers to understanding the cultural similarities and

This quantitative tool comprises of three techniques used to identify, describe,

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