IBDP Business Management Business Organization And Environment Chapter 6 Notes

growth and evolution


These notes have specially been curated by expert teachers to simplify and enlighten concepts given in IB Business Management HL. The notes are comprehensive in nature and are sufficient to study the chapter in depth, One need not look for other resources beyond the notes provided on our website which can be accessed for free. The notes for Organizational Objectives IBDP HL are available on our official website and can be downloaded for free.

Business management IBDP is a part of group 3 Individuals and the Society of the IB curriculum. The IBDP Business Management course has been devised for imparting knowledge and understanding of different theories of Business Management and application of various tools and methods. It enables the students to analyze and evaluate business activities at all levels- local, national, or international, It also helps in developing A holistic understanding of the business environment today which is complex and fast changing.

The subject covers important characteristics of business organization and business functions of human resource management, finance and accounting, marketing, and operations management. The purpose of the course is to help students develop skills that enable them to think critically and make the right decisions after carefully evaluating and analyzing the issue at hand. It also aims at developing the understanding of the importance of innovation and exploring business from different cultural perspectives.

The chapter on Growth and Evolution begins with an explanation of the economies and diseconomies of scale with a detailed description of the internal as well as the external economies of scale. Technical economies, financial economies, marketing economies, marketing economies and specialization economies are a few examples of internal economies of scale. External economies of scale would include technological advancements, improved transportation services and regional specialization. Diseconomies of scale refers to the increase in the average production costs as the size of the business keeps increasing, gradually becoming inefficient.

Next, the examples of internal and external diseconomies of scale are given. An in-depth comparison between small organizations and large organizations is given along with advantages and disadvantages of both. Business Growth is a stage of complete utilization of the resources where a business can expand to increase profitability and market share. The reasons why businesses seek this growth are both external and internal and are explained further. We also discuss the methods for external growth of an organizations which could be joint ventures, alliances, mergers, and franchising. Thus, the chapter gives a detailed account of how businesses grow and evolve.