Syllabus: International Baccalaureate - Individuals and societies - Business management (Standard Level)
Module: Unit 1: Introduction to Business Management
Lesson: 1.5 Growth and Evolution
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Introduction
Unit 1.5 of the IB Business Management Standard Level course explores Growth and Evolution, a pivotal topic within Individuals and Societies. It examines how and why businesses expand, the implications of that expansion, and the strategic choices involved.
This unit helps students grasp not just theoretical drivers of business growth, but the practical challenges that come with scaling operations, from mergers and takeovers to globalisation. These are essential competencies for learners preparing to enter a fast-changing workplace, aligning with Enterprise Skills’ mission to build career-ready students through commercial awareness.
Key Concepts
The IB syllabus outlines the following core areas for Unit 1.5:
Economies and Diseconomies of Scale: Understanding how businesses benefit (or suffer) from increased size, covering technical, financial, managerial, and marketing economies.
Internal and External Growth: Differences between organic (internal) expansion and external methods such as mergers and acquisitions.
Mergers, Takeovers, Joint Ventures, and Strategic Alliances: Types of external growth strategies and their advantages and risks.
Franchising: A model of growth that allows rapid expansion with relatively low capital risk.
Globalisation: Understanding the impact of operating internationally on scale, competition, and organisational strategy.
Multinational Companies (MNCs): Characteristics and implications of becoming or competing with an MNC.
Each concept is designed to give learners insight into how real-world companies make complex growth decisions under competitive pressures.
Real-World Relevance
Understanding growth and evolution in business is central to decoding the modern economy. Here are recent examples to anchor the learning:
Disney’s acquisition of 21st Century Fox showcased how horizontal integration can expand market dominance and content libraries.
Tesco’s move into financial services is an example of diversification and internal growth by leveraging existing customer trust.
Zoom’s global expansion during the pandemic illustrates how businesses scale rapidly in response to market demand, with both benefits (market capture) and diseconomies (service instability).
Greggs’ franchise model with motorway services demonstrates controlled growth using external partnerships.
These case studies enable students to apply theoretical models to strategic decisions that define market success or failure.
How It’s Assessed
IB Business Management assessment at Standard Level includes both internal assessment and final exams, testing knowledge, application, and critical analysis.
Paper 1:
Based on a pre-released case study
Students apply growth-related concepts (e.g. economies of scale or types of expansion) to the fictional business
Paper 2:
Includes structured questions and extended response questions
Relevant command terms include:
Analyse: Break down business strategies such as mergers into components and relationships
Evaluate: Make judgements on a business’s decision to expand internally vs externally
Discuss: Explore pros and cons of growth strategies like franchising
Students are expected to make evidence-based arguments using real or case-specific data — not simply recite definitions.
Enterprise Skills Integration
This unit connects directly to the Enterprise Skills thematic framework, particularly:
Decision-Making & Problem-Solving: Students evaluate strategic growth options using data, stakeholder input, and risk assessment.
Commercial Awareness: Learners gain insight into how businesses sustain and scale value creation — from internal reinvestment to market acquisitions.
Cross-Curricular Application: Understanding organisational growth links to geography (globalisation), economics (market entry), and maths (scale-related calculations).
Enterprise Skills tools like business simulations allow students to apply these concepts in live scenarios, making strategic decisions in response to competitive pressures and simulated financial data.
Careers Links
Growth and evolution in business is foundational to a variety of career paths, and its inclusion helps fulfil Gatsby Benchmarks:
Benchmark 4: Curriculum learning is linked to careers, as students evaluate how businesses grow and enter new markets.
Benchmark 5: Encounters with employers are possible via guest speakers or simulated case competitions on topics like mergers or global strategy.
Benchmark 6: Students gain virtual workplace experience through simulations that mimic real-world growth decisions, including investment appraisals and market entry strategies.
Relevant career roles include:
Business Analyst
Strategy Consultant
Investment Banker (M&A teams)
Operations Manager
Franchise Development Officer
These pathways emphasise analytical thinking, commercial decision-making, and an understanding of organisational dynamics.
Teaching Notes
Teaching Tips:
Start with a familiar example: Use brands students interact with (e.g. Netflix or Amazon) to explain how globalisation or internal growth works.
Simulate a takeover decision: Assign teams to argue for or against a fictional merger. This helps apply concepts like synergy, cultural fit, and financial risk.
Incorporate cross-subject learning: For example, link economies of scale to mathematical ratios or logistical challenges (Operations Management).
Common Pitfalls:
Students often confuse types of growth (internal vs external) or mix up terms like merger and takeover.
Many struggle to differentiate economies of scale from simply having more profit — emphasise cost advantages per unit.
Extension Activities:
Run an Enterprise Skills simulation focused on scaling a start-up — students experience decision-making around reinvestment, franchising, or external finance.
Task students with conducting a mini case study of a local or national business that has recently expanded.
These approaches boost comprehension, foster career readiness, and prepare students for assessment and real-world application.
