Syllabus: International Baccalaureate - Individuals and societies - Business management (Standard Level)
Module: Unit 1: Introduction to Business Management
Lesson: 1.6 Multinational Companies (MNCs)
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Introduction
Why do some firms expand across borders while others stay local? This lesson introduces Multinational Companies (MNCs) — key players in today’s global economy — and supports learners to explore their strategic, social and ethical implications. Aligned to the International Baccalaureate (IB) Business Management Standard Level course, this unit offers real-world case studies, analytical tools and critical questions that spark enquiry and prepare students for assessment.
Key Concepts
According to the IB Business Management guide (Standard Level), Section 1.6 on Multinational Companies focuses on:
<ul> <li><strong>Definition and characteristics:</strong> What defines an MNC, and how do they differ from domestic firms?</li> <li><strong>Reasons for growth:</strong> Why firms choose to operate globally — economies of scale, market access, cost reductions, and diversification of risk.</li> <li><strong>Impact on host countries:</strong> Evaluating both the positive (e.g., job creation, infrastructure investment) and negative (e.g., exploitation, environmental damage) outcomes.</li> <li><strong>Stakeholder conflicts:</strong> How MNC operations can benefit or harm different interest groups — governments, employees, consumers, local businesses.</li> <li><strong>Ethics and cultural considerations:</strong> Managing operations across diverse legal, social and cultural contexts.</li> </ul>
These concepts lay the foundation for students to apply critical thinking, assess business behaviour, and weigh ethical dilemmas in international contexts.
Real-World Relevance
The topic of MNCs is ideal for illustrating the interconnectedness of business and society. Teachers can engage students using high-profile examples like:
<ul> <li><strong>Apple Inc.:</strong> Outsourcing production to countries like China to reduce costs, while facing criticism over labour conditions.</li> <li><strong>Starbucks:</strong> Its presence in over 80 countries provides a springboard for discussions on cultural adaptation and supply chain ethics.</li> <li><strong>Unilever:</strong> Known for sustainability pledges and global outreach, Unilever offers a counterpoint to criticisms aimed at MNCs.</li> </ul>
Encouraging students to track news headlines related to MNC tax strategies, factory conditions, or marketing controversies will deepen engagement and real-world understanding.
How It’s Assessed
In IB Business Management (SL), MNCs may appear in:
<ul> <li><strong>Paper 1 (based on a pre-seen case study):</strong> Students apply their knowledge of MNCs to a fictional business scenario, addressing expansion, stakeholder tensions or ethical dilemmas.</li> <li><strong>Paper 2 (structured questions):</strong> Section C typically includes data-response questions that test understanding of MNC strategies, impacts and stakeholder views.</li> <li><strong>Command terms:</strong> Look out for verbs such as <em>analyse</em>, <em>evaluate</em>, <em>discuss</em>, and <em>examine</em> — students must go beyond description to make well-supported judgements.</li> </ul>
Assessment demands clarity of argument, relevant application of business theory, and thoughtful interpretation of data.
Enterprise Skills Integration
Teaching about MNCs lends itself to embedding enterprise and employability skills, including:
<ul> <li><strong>Critical thinking:</strong> Weighing ethical considerations versus financial gain.</li> <li><strong>Decision-making:</strong> Judging whether a business should enter a new market or outsource production.</li> <li><strong>Communication:</strong> Constructing balanced arguments in presentations and written responses.</li> <li><strong>Cultural awareness:</strong> Analysing marketing and HR strategies across borders.</li> </ul>
Consider using structured debates or mock board meetings to explore competing stakeholder perspectives.
Careers Links
This topic supports careers education through:
<ul> <li><strong>Gatsby Benchmark 4 (Linking curriculum learning to careers):</strong> Explores how real MNCs operate and the roles within them.</li> <li><strong>Job roles:</strong> International marketing, global logistics, business consultancy, ethics and compliance, finance and tax strategy.</li> <li><strong>Pathways:</strong> IB learners interested in business, economics, or international relations will find MNCs a cornerstone concept across higher education and future work environments.</li> </ul>
Invite guest speakers from locally based multinationals or arrange virtual Q&As with professionals in international business to extend insights.
Teaching Notes
<ul> <li><strong>Common pitfalls:</strong> Students may oversimplify stakeholder conflicts or ignore ethical nuances. Use case-based questioning to stretch analysis.</li> <li><strong>Extension activity:</strong> Task students with comparing two MNCs’ approaches to sustainability or employee relations in different countries.</li> <li><strong>Recommended tools:</strong> SWOT analysis, STEEPLE analysis and stakeholder mapping are particularly effective when evaluating MNC strategies.</li> <li><strong>Cross-curricular links:</strong> Geography (globalisation), Politics (regulation), and Economics (trade policy) can offer interdisciplinary opportunities.</li> </ul>
Encourage reflective writing tasks to help students internalise their own values when faced with ethical business dilemmas.
