IB Business Management SL 6.1.1 SWOT analysis Question Bank
Practise IB Business Management SL/HL 6.1.1 by applying swot analysis concepts to exam-style questions.
- Syllabus
- First assessment 2024
- Course
- Business management SL
- Level
- SL
Exam points
- identify the relevant model, concept or evidence
- apply the correct subject framework to the question
- evaluate the result using clear evidence and subject terminology
6.1.1—SWOT analysis question 1
[Maximum number: 4]
The UWP Mission to Loyka was sent to prevent further violence and its aim was to maintain order, peace and security. General Ron Meiri was replaced in late 2011 by General Diane Pierce, whose situational leadership style and social-marketing experience were intended to reduce problems. She had two objectives: a strategic objective to improve the image of the Olive Hats and public relations, reducing conflicts and improving troop safety; and an operational objective to remotivate her troops. Salaries were set by the UWP, so she had to use non-financial motivation. She planned a hospital or university as a non-profit social-infrastructure project. A hospital could improve access to medical care, especially for poorer people, but there was a shortage of doctors and concern about foreign male doctors treating local women. A university could train engineers, teachers and nurses, but could become a symbol of foreign intervention and a less secure target. The local governor preferred the university. The UWP asked for a survey and focus groups as part of additional primary research. Kos was a sole trader dependent on his car, one large customer and his own labour; his established UWP contacts and just-in-time stock control were strengths, while limited capital and lack of economies of scale were weaknesses.
| Selected financial information ($ per month) | Option 1 | Option 2 |
|---|---|---|
| Sales revenue | 400 | 4000 |
| Cost of goods sold | 200 | 1800 |
| Gross profit | 200 | 2200 |
| Gas and vehicle maintenance | 50 | 400 |
| Rent of storage facility | 0 | 200 |
| Interest | 0 | 100 |
| Net profit after interest and before tax | 150 | 1500 |
Appendix 5a: Current produce distribution business
Prepare a SWOT analysis of Kos Palouk's current produce distribution business (with no changes) showing only the strengths and weaknesses.
The strengths of his current produce distribution business include the following:
- he has a network of reliable suppliers (local farms)
- he has an established reputation at the UWP Mission where he has good contacts (such as Colonel Michael Donovan) and good customers (the troops)
- his just-in-time (JIT) stock control system ensures fresh produce, avoiding wastage
- his business model is simple yet effective (he has a gross profit of $200a month)
- accept any other relevant strength.
The weaknesses of his current produce distribution business include the following:
- he is a sole trader with no employee, so if ever he is ill and cannot work, he has nobody to cover for him
- he has limited capital (working capital) and limited resources
- he is very dependent on his car: what would he do if it breaks down?
- he is overly dependent on one large customer (UWP)
- his current business is so small that there is no scope for economy of scale
- accept any other relevant weakness.
N.B.
- Do not credit external factors (such as the opportunity for expansion coming from the UWP Mission's development of a new facility, or the threat coming from road attacks); the strengths and weaknesses must be internal and must refer to the current operation.
- To receive a mark, each point must be clear, precise and without any ambiguity.
Mark as 2+2.
Award [1 mark] for each correct strength, up to a maximum of [2 marks], and [1 mark] for each correct weakness, up to a maximum of [2 marks].
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