Syllabus: International Baccalaureate - Individuals and societies - Business management (Standard Level)
Module: Unit 1: Introduction to business management
Lesson: 1.1 What is a business?

Introduction

This article supports teaching Unit 1.1: What is a Business? from the International Baccalaureate (IB) Business Management Standard Level (SL) curriculum. It is designed to provide value for teachers, SLT, and careers leads by highlighting syllabus alignment, real-world insight, assessment readiness, and whole-school Gatsby compliance opportunities.

Unit 1.1 sets the foundation for the entire Business Management course, introducing students to the purpose, structure, and function of businesses in society. From stakeholder roles to value creation, this unit is pivotal in establishing the commercial awareness that underpins every business decision.

Key Concepts

Aligned with the IB Business Management Guide, the key learning points in Unit 1.1 include:

• Definition of a business: Organisations that combine human, physical, and financial resources to produce goods and services to meet customer needs and wants.

• The role of businesses: Understanding how businesses add value through operations and the role they play in economic development.

• Business inputs and outputs: Differentiating between resources (land, labour, capital, and enterprise) and outputs (goods and services).

• Sectors of the economy: Primary, secondary, tertiary, and quaternary sectors, including sectoral change.

• Types of organisations: For-profit (sole traders, partnerships, companies) and not-for-profit organisations (NGOs, charities, cooperatives).

• Business functions: HR, Finance, Marketing, Operations – understanding how departments contribute to business objectives.

• Entrepreneurship vs intrapreneurship: Roles, traits, and significance in driving innovation and value.

• Reasons for starting a business: Including opportunity, independence, income, or personal passion.

These concepts lay the groundwork for students to explore more advanced areas such as strategy, operations, and financial decision-making later in the course.

Real-World Relevance

Understanding what a business is has never been more important. Recent global events have tested the adaptability of organisations and reshaped consumer expectations. Consider:

• Netflix vs Blockbuster: A textbook example of sectoral change and business model evolution. Netflix’s pivot from DVD rental to streaming and content production highlights business agility.

• Greggs’ expansion strategy: Transitioning from a regional bakery to a nationwide quick-service chain shows the role of marketing and operations in creating national value.

• Local social enterprises: Charities like The Big Issue or community interest companies exemplify not-for-profit models creating social value while operating commercially.

These examples help students see how businesses respond to economic conditions, social expectations, and technological change.

How It’s Assessed

In IB Business Management SL, Unit 1.1 is typically assessed through:

• Paper 1 (Case Study): Applied questions based on a pre-released business scenario.

• Paper 2 (Data Response): Includes stimulus material followed by short-answer and extended-response questions.

Key command terms students must understand and apply include:

• Define / Explain / Analyse / Discuss / Evaluate

• Expect tasks such as:

  • Define a business organisation.

  • Analyse the reasons why an entrepreneur might start a business.

  • Evaluate the likely impact of sectoral change on a specific business.

Mark schemes reward structured analysis, use of business terminology, and real-world application. Encourage students to practise linking theory to realistic business contexts.

Enterprise Skills Integration

Enterprise Skills Ltd tools and simulations are designed to embed commercial awareness and workplace confidence from day one. Unit 1.1 offers clear opportunities to develop the following themes:

• Workplace Readiness: Students explore organisational roles, decision-making hierarchies, and interdepartmental collaboration.

• Commercial Awareness: Recognising business models and how businesses generate value is a direct match to Skills Hub modules like “Understanding Business Models”.

• Decision-Making & Problem-Solving: Entrepreneurial case tasks encourage learners to weigh risks, allocate limited resources, and justify decisions—mirroring real workplace scenarios.

Using Skills Hub’s simulations or debrief sessions, students role-play different departments in a virtual company, aligning precisely with IB’s focus on departmental interdependencies.

Careers Links

This unit aligns with Gatsby Benchmark 4 (Linking curriculum learning to careers) by exploring how businesses function in real industries. Additional links include:

• Gatsby Benchmark 5: By integrating guest speakers or employer case studies (available via Skills Hub Futures), students gain meaningful exposure to workplace roles.

• Gatsby Benchmark 6: Simulated business environments offer pseudo-workplace experience, critical for early-stage career confidence.

Relevant career pathways introduced in this unit include:

• Business analyst

• Marketing assistant

• Operations coordinator

• Start-up founder

• Charity project manager

Embedding career discussions into lessons ensures students understand that business management is not just theoretical—it’s deeply practical.

Teaching Notes

Common Pitfalls:

• Students often confuse needs and wants—use real-life examples (e.g. food vs Netflix).

• There’s often limited understanding of non-profit models—introduce local charities for context.

• Entrepreneurship is romanticised—be sure to discuss the risks and reasons why start-ups fail.

Teaching Tips:

• Use enterprise role play to simulate interdepartmental collaboration (e.g. students act as HR, Finance, Marketing).

• Build mini case studies using current news (e.g. Uber’s transition to a diversified mobility platform).

• Make use of Skills Hub’s zero-prep tools that walk students through real commercial dilemmas, mapped to this exact unit.

Extension Activities:

• Invite a local business owner or charity leader to discuss their “why”.

• Have students analyse a failed business (e.g. Toys “R” Us) and identify internal vs external causes.

• Encourage cross-subject connections—link finance from this unit with maths-based analysis of costs, revenues, and breakeven.