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Thursday, December 24, 2020

Ansoff Matrix - Business Analytical Tool for IB Business Management.


Ansoff Matrix

Ansoff Matrix

Is your business  revenue growth rate below your expectations?

 Are you planning to :

·       sell more in the existing market?

·       enter into a new market?

·       develop a new product? or

·       move away from the existing core business?

If your answer is Yes, then this analytical tool is definitely useful to you.

This is a 2 by 2 matrix, which offers, 4 different business growth options for business organizations.

Guess, what we are talking about!

In this blog post, I am talking about,   business analytical tool, the Ansoff matrix.

The Ansoff Matrix is a strategic planning tool that provides a framework to help executives, senior managers, and marketers devise strategies for future growth. It is named after Russian American Igor Ansoff, an applied mathematician, and business manager, created the concept.

There are four possible growth strategies!

Market penetration, Here business firms seek to achieve a growth rate with existing products in their current market segment. This is the least risky strategy.

Market Development, here firms seek to achieve growth by selling existing products in the new market segment.

Product development, here, firms   seek to  achieve growth by   offering new  products in the existing market segment., and finally,

Diversification, his strategy focuses on reaching new markets with new products. Diversification can be either related, or unrelated.

To sum it up,

Ansoff matrix offers, four different growth options:

1.      Market penetration.

2.      Market Development.

3.      Product Development, and

4.      Diversification.

If you find this blog post is useful, please post your comments below.

Tuesday, December 22, 2020

Revenue expenditure and Capital Expenditure Worksheet for IB, A Level and IGCSE Students.


Revenue expenditure and Capital Expenditure  Worksheet for IB, A Level  and IGCSE Students.

Capital expenditure Worksheet

Get Connected (GC)

 Get Connected (GC) manufactures smartphones and other audio related electronics gadgets.  GC also supplies electronics goods components to some of the local unbranded manufacturers. The company targets college students and fresh graduates. Get Connected is known for premium products with high-quality customer services.

Currently, GC has two manufacturing units where more than 200 people are employees at various levels, and one assembly unit where   the final products are assembled using high-tech assembly machines and robots. Some of their components of smartphones are outsourced to quality and reliable suppliers.

GC also rented a high-tech warehouse near the airport for easy transportation of their final products and components.  The finance manager reported that GC’s revenue expenditure is increasing steadily.


a)      Define the term ‘capital expenditure’ [ 2 marks]

b)      Define the term ‘revenue expenditure’ [ 2 marks]

c)      With reference to GC, identify   4 examples of revenue expenditure and four examples of capital expenditure. [ 4 marks]

d)       Explain two differences between capital expenditure and revenue expenditure. [ 4 marks]

Thursday, December 17, 2020

Case Study Business Objectives: IB Business Management, A Level Business and IGCSE Business Studies- Qubit Kart Appliances( QAP) Plc.


 Qubit Kart Appliances( QAP) Plc.

Business Objectives

Qubit Kart  Appliances  is a  global conglomerate,  which manufacturers electrical goods, both for household, and industrial purpose, smart phone spare parts, sports equipment, garments, and  medical equipment. In 2018, Jacob Monk, took over as chairman of chief executive officer at Qubit Kart.

Jacob immediately decided that, Qubit had to make major changes to organisation structure and positions if Qubit was to survive, and grow in this competitive  globalised business. Jacob held series of meetings, with various regional heads, to understand the current challenges, and opportunities.

The company has prepared the   report which consists of major findings and measures to be taken.

  • ·       Aggressive market penetration strategy where Qubit holds a significant market share and reputation.
  • ·       Redefine objectives, and strategies to give direction to employees.
  • ·       Extensive research, where there is a possibility of growth potential in secondary and tertiary sectors.
  • ·       Closedown underperforming divisions like sports equipment,  and garments.
  • ·       Reduce the overall workforce by 20 percent.
  • ·        Further extensive training for energetic and dynamic regional heads.
  • ·       Replace regional managers, who  are  failing to meet performance targets.
  • ·       Explore tertiary sector areas like education, tourism, investment, and banking.
  • ·       Draft ethical objectives, and focus on corporate social responsibilities.
  • ·       Extensive strategies  to face threats of  increasing  globalisation.

However,  the implementation of  the above will involve  a huge financial cost and hence, the global finance director of Qubit Kart  Appliances may not support all of them.


a)      Define the term ‘public limited company’.

[ 2 marks]

b)      With reference to Qubit Kart Appliances, distinguish between objectives and strategies.


[ 4 marks]

c)      Using the SWOT analysis model, assess the the current position of Qubit Kart Appliances.


[ 4 marks]

d)      Identify and explain two advantages for Qubit Kart Appliances of drafting ethical objectives.



[ 4 marks]

Production Methods: Job, Batch, and Flow Production Methods

Production Methods

Production Methods:  Job, Batch,  and Flow Production Methods
As part of their industrial visit, the students of Universal International school, have visited local bakeries, restaurants, malls, and factories to understand different production methods. The students team lead by Mr Mark, gave an introduction to the Production Management and its relationship with other functional areas of business such as:
 1. Marketing Management, 
2. Human Resources, and, 
3. Finance. 
Mark explained that, production is about creating goods and services. Managers have to decide on the most efficient way of organizing production for their particular product. The production process helps in creating value by applying labour on land and capital. Improves welfare as more commodities mean more utility. Generates employment and income, which develops the economy. The students visited a bakery to understand what is ‘Job production’. 
Job Production 
Job production is the manufacture of individual 'one-off', or unique items made to customer order and specifications. The product is seen through the whole process, from start to finish, by an individual or group of workers. The production of the next individual item does not begin until the previous job is complete. Each order is different and may not be repeated. For example, a customer can order for a particular flavored birthday cake. Other examples include, made to measure suits, development of software for a specific business needs, and personal or commercial paintings. Job production offers varied challenging jobs which increase employees motivation and morale. However, Job production will be time-consuming and expensive because it is labour intensive.

Job Production

 Batch Production:
  Batch production involves the production of identical products made in batches. The group remains together as it passes through each stage of production until all processes are complete. Changes may be made between batches. For example, a batch of a particular size of jeans is produced and then a batch of another size. The process, therefore, includes a delay between batches while equipment is changed or recalibrated; this is known as downtime. Other examples include several houses built together using the same design and structure, and certain design and size of tables and chairs are made. This is a flexible way of working and production can be changed from one product to another. However, more warehouse space is needed for stocks of raw materials and semi-finished goods.

Batch Production

Flow Production

 Flow production is where a large quantity of standard products is produced in a continuous process. Sometimes referred to as mass production. Flow production is highly capital-intensive and has high set-up costs, requiring firms to operate near capacity.

Businesses which follow flow production method, usually gain from economies of scale. This leads to lower unit cost, and therefore lower prices and higher sales.

However, set up cost will be huge and the production system is inflexible.

Flow Production

In conclusion,

There are three important  production methods:

Job production, batch production,  and flow production. The most appropriate method will vary from business to business. Both internal and external factors influence the selection of suitable production methods.

Watch with video: