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IB Business Management HL 1.5.2 Internal and External Growth Questions

Practise analysing internal and external growth strategies, evaluating their advantages, disadvantages, and strategic options for business expansion in IB Business Management HL.

Syllabus
First assessment 2024
Course
Business management HL
Level
HL

Exam points

  • Analyse internal and external growth strategies, evaluating their advantages, disadvantages and strategic options for business expansion.

IB Business Management HL 1.5.2 Internal and External Growth Questions question 1

[Maximum number: 2]

Mutombo Window Fans (MWF) manufactures and sells window fans to wholesalers across eastern Africa. Although the business began small, it experienced rapid internal growth through aggressive, commission-based sales.

Currently, MWF sells 300 window fans per month. Each fan sells at an average price of $100.

Mutombo Window Fans (MWF)



Mutombo Window Fans (MWF) manufactures and sells window fans to wholesalers across eastern Africa. Although the business began small, it experienced rapid internal growth through aggressive, commission-based sales.

Currently, MWF sells 300 window fans per month. Each fan sells at an average price of $100\$100.

Table 1: Forecasted fixed costs for 2020 (all figures in \$)

Table 1: Forecasted fixed costs for 2020 (all figures in \$)

Table 1: Forecasted fixed costs for 2020 (all figures in \$)

Table 1: Forecasted fixed costs for 2020 (all figures in \$)

Table 2: Variable costs per fan for 2020 (all figures in \$)

Table 2: Variable costs per fan for 2020 (all figures in \$)

Define the term internal growth.

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