Syllabus: International Baccalaureate - Individuals and societies - Business management (Standard Level)
Module: Unit 5: Operations Management
Lesson: 5.4 Location
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Introduction
The International Baccalaureate (IB) Business Management Standard Level (SL) course aims to provide students with a real-world understanding of how businesses operate, make strategic decisions, and adapt to external and internal environments. Unit 5.4: Location falls within the broader Operations Management topic and focuses on the factors influencing where a business situates its operations.
This unit is vital for understanding how strategic decisions intersect with cost control, customer access, operational efficiency, and long-term competitiveness. For schools, it’s a practical touchpoint to integrate commercial awareness and workplace readiness, both of which directly support Gatsby Benchmark 4 and 5.
Key Concepts
Aligned to the IB Business Management SL specification, students are expected to explore the following:
Quantitative and qualitative factors influencing location: including costs (land, labour, transport), proximity to markets, suppliers, and government incentives.
Comparative location analysis: weighing competing factors to evaluate location options.
Outsourcing and offshoring: exploring why businesses shift parts of operations to other countries and the implications thereof.
Footloose organisations: businesses that can relocate easily due to limited fixed assets or digital operations.
Location decisions in multinational companies (MNCs): including cultural, legal, and economic considerations.
Industrial inertia: reasons businesses remain in existing locations despite more cost-effective alternatives.
These concepts lay the groundwork for evaluating business decision-making through a commercial lens and strengthen students’ strategic thinking.
Real-World Relevance
The decision of where to locate is one of the most consequential operational choices a business can make. Consider:
Tesla’s Gigafactories in Germany and Mexico reflect a blend of labour costs, market access, and strategic supply chain control.
Amazon UK’s logistics centres are purposefully located near transport infrastructure and major urban centres to optimise delivery speed and reduce last-mile costs.
BrewDog, the Scottish brewer, expanded production to the US with a facility in Ohio, citing proximity to the growing American market and favourable business conditions.
These examples bring classroom concepts to life, demonstrating how location strategies shape company performance, customer satisfaction, and even environmental impact.
How It’s Assessed
The IB assessment structure for Business Management SL includes both internal and external components:
Paper 1 (Case Study-based) may ask students to evaluate the location decision of a business, typically within a structured data context.
Paper 2 often includes data response and extended response questions, where students must apply location theory and justify recommendations.
Command terms include: analyse, evaluate, justify, discuss, and recommend — each requiring critical thinking and applied understanding.
Assessment success hinges on students’ ability to interpret data, apply relevant theory, and offer balanced, justified conclusions. Using real case studies in teaching supports this analytical depth.
Enterprise Skills Integration
This topic naturally supports key enterprise competencies:
Decision-Making & Problem-Solving: Students weigh trade-offs, assess risks, and recommend optimal location strategies.
Commercial Awareness: Understanding the operational and strategic consequences of location decisions builds insight into how businesses function in dynamic markets.
Stakeholder Awareness: Considering how different locations affect customers, employees, governments, and shareholders.
Cross-Curricular Application: Opportunities to explore data analysis (mathematics), geography (urban planning), and sustainability (environmental impacts of location decisions).
Enterprise Skills’ Skills Hub Futures supports this with location-based case study tools, workplace simulation activities, and scaffolded decision-making frameworks requiring zero prep time for teachers.
Careers Links
This topic connects directly with Gatsby Benchmarks 4, 5 and 6:
Benchmark 4: Curriculum linked to careers — location analysis mirrors decisions made by operations managers, supply chain analysts, and business development leads.
Benchmark 5: Employer encounters — schools can invite logistics or operations professionals to discuss real-world decisions.
Benchmark 6: Workplace experience — virtual site analysis tasks simulate challenges faced by MNCs and regional businesses.
Careers linked to this unit include:
Operations Manager
Location Analyst
Supply Chain Consultant
Economic Development Officer
Business Expansion Specialist
Using real job specs or employer-led challenges makes these links more tangible and improves student engagement.
Teaching Notes
Teaching Tips:
Use decision matrices for comparative location exercises — helps students structure justifications.
Include map-based tasks where students assess location suitability using demographic and infrastructure data.
Set up a mini role-play simulation: students act as consultants advising a business on location options, presenting their recommendations.
Leverage Skills Hub Futures tools to integrate employer-led scenarios requiring real decision-making, such as relocation challenges or logistics cost trade-offs.
Common Pitfalls:
Students default to cost-only arguments. Encourage deeper thinking: What about access to talent, transport links, or political stability?
Confusion between outsourcing and offshoring — clarify with clear, distinct examples.
Limited awareness of globalisation’s role in location decisions — reinforce with up-to-date examples like Brexit’s impact on warehouse strategies.
Extension Activities:
Investigate reshoring trends in the UK (e.g. manufacturing firms returning production from Asia).
Create a Dragon’s Den-style pitch where students justify a new location for a fictional brand.
Debate: “Should businesses always prioritise costs when deciding location?”
