business
IB DIPLOMA PROGRAMME
PROGRAMME DU DIPLÔME DU BI
PROGRAMA DEL DIPLOMA DEL BI
M07/3/BUSMT/HP2/ENG/TZ0/XX/M+
MARKSCHEME
May 2007
BUSINESS AND MANAGEMENT
Higher Level
Paper 2
32 pages
–2–
M07/3/BUSMT/HP2/ENG/TZ0/XX/M+
This markscheme is confidential and for the exclusive use of examiners in this examination session.
It is the property of the International Baccalaureate and must not be reproduced or distributed to any other person without the authorization of IBCA.
–3–
1.
(a)
(i)
M07/3/BUSMT/HP2/ENG/TZ0/XX/M+
Identify two ways the size of a firm can be measured.
[2 marks]
The size of a firm can be measured by the number of employees, total assets, sales revenue or market capitalization profit.
Award [1 mark] for each form of measuring the size of a firm up to a total of [2 marks].
(ii)
Explain why Petroquímica Argentina SA needs to grow.
The firm is competing in a globalized market with large multinationals.
If it wants to survive it must have a growth rhythm that keeps pace with its competitors. It must bring its prices to a level that is similar to them or else it will lose business to them The field in which Petroquímica
Argentina SA operates requires a large amount of research and development, since scientific and technological advance keep pushing for new innovations. Large multinationals have huge funds to invest in R&D. Innovation and quality control in the field is a necessity, but also costly and sophisticated. Firms operating in globalized markets have to keep up with the growth and quality of the larger leading firms, or divert their products to smaller, niche markets. Petroquímica
Argentina SA may also need to grow in order to defend itself against a potential takeover bid by a larger organization.
[3 to 4 marks]
A detailed explanation of why the firm needs to grow in order to compete in a globalized market. Reference is made to the case for [4 marks].
[1 to 2 marks]
IB DIPLOMA PROGRAMME
PROGRAMME DU DIPLÔME DU BI
PROGRAMA DEL DIPLOMA DEL BI
M07/3/BUSMT/HP2/ENG/TZ0/XX/M+
MARKSCHEME
May 2007
BUSINESS AND MANAGEMENT
Higher Level
Paper 2
32 pages
–2–
M07/3/BUSMT/HP2/ENG/TZ0/XX/M+
This markscheme is confidential and for the exclusive use of examiners in this examination session.
It is the property of the International Baccalaureate and must not be reproduced or distributed to any other person without the authorization of IBCA.
–3–
1.
(a)
(i)
M07/3/BUSMT/HP2/ENG/TZ0/XX/M+
Identify two ways the size of a firm can be measured.
[2 marks]
The size of a firm can be measured by the number of employees, total assets, sales revenue or market capitalization profit.
Award [1 mark] for each form of measuring the size of a firm up to a total of [2 marks].
(ii)
Explain why Petroquímica Argentina SA needs to grow.
The firm is competing in a globalized market with large multinationals.
If it wants to survive it must have a growth rhythm that keeps pace with its competitors. It must bring its prices to a level that is similar to them or else it will lose business to them The field in which Petroquímica
Argentina SA operates requires a large amount of research and development, since scientific and technological advance keep pushing for new innovations. Large multinationals have huge funds to invest in R&D. Innovation and quality control in the field is a necessity, but also costly and sophisticated. Firms operating in globalized markets have to keep up with the growth and quality of the larger leading firms, or divert their products to smaller, niche markets. Petroquímica
Argentina SA may also need to grow in order to defend itself against a potential takeover bid by a larger organization.
[3 to 4 marks]
A detailed explanation of why the firm needs to grow in order to compete in a globalized market. Reference is made to the case for [4 marks].
[1 to 2 marks]