Business management, Paper 2 HL/SL, Section C - CUEGIS ESSAY

The CUEGIS concepts place BM into context

Firstly, you need to understand the entire course content, this is key. This is
practised through Base knowledge tests. Secondly, you must also have the ability
to interpret assignments in Paper 1 and 2, and use the information to fulfil all of
the assessment criteria, from knowledge, to application, analysis and evaluation.
You may also have to demonstrate skills such as drawing or calculating. This is
practised in class and the regular Tests.

Fundamentally, one of the main aims of the new course however, is to get you
making connections to real world examples in the form of case studies (context).
Can you use your knowledge to understand real business world examples and
discuss them in a coherent manner? Can you understand the relationships
between concepts, for example, how globalisation has influenced ethics, or how
change requires certain strategies? You are already familiar with the acronym
GECCIS, now changed into CUEGIS (Change, cUlture, Ethics, Globalisation,
Innovation & Strategy).

Change: reflecting the greater speed with which decisions need to be made and
circumstances change in the operating environment of most businesses.

Culture: appreciating that businesses need to align a broad spectrum of

individual, collective and societal goals.

Ethics: emphasizing the fact that the ethical considerations businesses face are
substantial and near all pervasive, instead of being peripheral and isolatable.

Globalization: reflecting the interconnected patterns of production and

consumption shaped by businesses and affecting them.

Innovation: emphasizing the need for businesses to renew themselves in the

competitive, technologically advanced market place with increasingly
sophisticated customers.

Strategy: reflecting the importance of holistic long-term planning in an

operating environment with the above attributes.

The 6 concepts have been incorporated into your Paper 2 exam, question C which
is a 20 mark essay. Here you will have to discuss two concepts in relation to a
real world organisation of your choice. Therefore, you must understand the
concepts and also have knowledge of real world examples and case studies. I will
of course provide some examples in lessons, but there is also further emphasis
on you now, as the learner, to take the initiative and keep up to date on the
dynamic nature of business around you. A key task will be to understand how
different theories that you learn (content) fit into each applicable concept,
through a case study (context). In other words, you must be able to recognise
and pick out relevant points made considering the concepts, and discuss these
based on syllabus content, supported by evidence from the context of the case.

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Business management, Paper 2 HL/SL, Section C - CUEGIS ESSAY

The CUEGIS Essay in

short
Paper 2 HL/SL, Section C

The principal focus of

questions in this section is on
the concepts of change,
culture, ethics, globalization,
innovation and strategy that
underpin the business management course.

While the principal focus for each question is on two of the concepts, students
need to draw on their knowledge of other relevant topics in the syllabus,
including the HL extension.

There is no stimulus material provided for the questions.

Students are required to address the question in relation to one real-world

organization but may use information from a range of sources, which may include
real-world case studies examined in class and IA research. The real-world
organization that students use in their response must not be the case study
organization featured in paper 1.

The response should consider the perspectives of individuals and societies upon
which the real-world organization impacts.

Students answer one extended response question from a choice of three.

Assessment objective level 3 (AO3) command terms is used in each question.

Each question hence requires: knowledge and understanding (AO1); application

and analysis (AO2); synthesis and evaluation (AO3); and a variety of appropriate
skills (real-world organization knowledge).

Each question is worth 20 marks.

Section C is worth a total of 20 marks. Marks are allocated using assessment

criteria.

Criterion A: Knowledge and conceptual understanding (4 marks)

1 Criterion B: Application (4 marks)
2 Criterion C: Reasoned arguments (4 marks)
3 Criterion D: Structure (4 marks)
4 Criterion E: Individuals and societies (4 marks)

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Business management, Paper 2 HL/SL, Section C - CUEGIS ESSAY

The meaning of the CUEGIS concepts

Change: reflecting the greater speed with which decisions need to be made and
circumstances change in the operating environment of most businesses.

Due to the conflicting forces, change must be managed within organisations if

they are to move forward and remain competitive. The relative strength of these
forces determines whether the change should take place. Force-field analysis is a
popular management tool to aid this process. It acts as a framework for helping
managers to understand the pressures for and against any change. By identifying
these forces, managers are able to assess the effects that the forces may have.
Managers can then plan to strengthen the forces supporting a decision for
change, and reduce the impacts of opposition to change.

Consider the following example. For generations, Kodak was synonymous with
photography. Founded in 1889, the company was one of the best-known brands
of the twentieth century. However, with the rise of digital cameras, the market for
camera films (dominated by Kodak) died a pretty quick death. Kodak, however,
ignored the change, having expanded its global workforce and increased
production of the old technology. By 2006 it was selling an obsolete product, and
in 2013 the company filed for bankruptcy protection.

Culture: appreciating that businesses need to align a broad spectrum of

individual, collective and societal goals.

Culture is the values, beliefs and norms of an organisation, country or other social
grouping. It shapes the customs of people and how things get done. Culture-
related questions relevant to the IB business management course include: What
are the cultural norms in your country regarding womens rights in the
workplace? What does equal opportunities mean in your country? How is this
translated in the workplace? What does inequality mean? How important is
business etiquette in your country? What about in other countries?

Language is an integral part of culture. Even countries that share a common

language (such as Australia and the USA) have cultural differences embedded in
their language.

Ethics: emphasizing the fact that the ethical considerations businesses face are
substantial and near all pervasive, instead of being peripheral and isolatable.

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Business management, Paper 2 HL/SL, Section C - CUEGIS ESSAY

Ethics are the socially accepted moral principles that guide decision making,
based on the collective belief of what is right and what is wrong. The rather
subjective nature of ethics means it is sometimes unclear what is right or
wrong, especially when looking at an issue from the perspective of various
cultures. Consider the examples below: Is it morally acceptable for a business to
fabricate its financial accounts if this prevents mass job losses?

Is it possible to ensure equity and equality in the workplace? Is it acceptable for a

business to monitor the online activities of employees, e.g. their e-mail
correspondence? Can it ever be morally acceptable to take credit for the work of
others? Can acting unethically ever be good for a business? Does acting
ethically hinder the profitability of an organisation?

Globalization: reflecting the interconnected patterns of production and

consumption shaped by businesses and affecting them.

Globalisation provides both opportunities and threats for businesses. Consider

these examples: Globalisation considerably increases the level of competition,
such as Vodafone (UK) competing with mobile operator 3, owned by Hutchison
Telecom (Hong Kong). Meeting customer expectations and needs becomes
increasingly more demanding. To have any competitive advantage, businesses
must meet the ever-greater customer demands for quality, service, price and
after-sales care. Businesses can strive to build a global presence. Li Ka-Shing, a
self-made multibillionaire and Asias richest man, has a reported wealth of over
$28.8 billion through the diversity of his global businesses in the property, food,
consumer electronics, telecommunications, utilities and ports industries.

Multinational companies have greater choice of location of their production

facilities. For example, Apple chose to outsource production to China due to the
relatively low costs of labour and land. Mergers, acquisitions and joint ventures
allow businesses to grow at a faster pace than if they were to expand organically.
For example, BMWs joint venture with Brilliance China Automotive in 2003 gave
the German car manufacturer direct access to the lucrative Chinese market.
Multinational companies and e-commerce businesses benefit from the increased
customer base that globalisation brings. With China and India embracing
globalisation, there are huge opportunities for businesses that trade with the two
most populated countries in the world.

Innovation: emphasizing the need for businesses to renew themselves in the

competitive, technologically advanced market place with increasingly
sophisticated customers.

Innovation in the corporate world can empower businesses and give them
competitive advantages. Many of the most economically successful businesses

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Business management, Paper 2 HL/SL, Section C - CUEGIS ESSAY

and countries are ones that have an innovative corporate culture. Innovative
entrepreneurs are those who come up with and commercialise new ideas or
reinvent (redefine) old ideas. In some cases, they even create new industries,
such as smartphones and tablet computers. In todays highly unpredictable
business world, innovation can be an important strategy. Hence, the vast majority
of large multinational companies are financially committed to innovation.

Innovation can apply to all aspects of business activities, not just products. For
example, innovation is integral to kaizen. Management guru Michael Porter said
that innovation is essential for the prospects of a business and for the economic
prosperity of a country. Innovation requires managers to think creatively and
more holistically about their entire business operations.

For example, many hotels and restaurants use customer feedback forms to
improve their services. Schools often use assessment data to measure student
performance and to take appropriate actions for continuous improvements to
student learning.

Strategy: reflecting the importance of holistic long-term planning in an

operating environment with the above attributes.

Strategy is about devising plans to achieve an organisations long-term goals.

There are three stages to the strategic process (see figure).

Stage 1: strategic analysis

Determining the current position of an organisation (where is the business now?)

Most organisations strive to anticipate the future needs of their stakeholders in

order to be successful. Strategic analysis is a thorough review of an
organisations current situation. It is concerned with examining an organisations
vision, mission, aims and objectives. Strategic analysis is vital for the prosperity
of a business because managers can become too focused on current needs, so
fail to see the future direction of the organisation. It can help to provide a clear
framework to aid decision making and this can help to allocate resources more
effectively. It can also involve, inform and inspire those affected by the process.

Stage 2: strategic choice

Determining the desired future of the organisation (where does the business want
to be?)

Ancient Chinese philosopher Lao Tzu, in the Tao te Ching (a text in the IB
philosophy course)said that A journey o fa thousand miles must begin with a
single step. Strategic choice is concerned with generating strategic options for
the organisation so it can move on. It requires an assessment of the financial

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Business management, Paper 2 HL/SL, Section C - CUEGIS ESSAY

costs and benefits of the available choices and a consideration of qualitative

factors before selecting the most appropriate strategy.

Stage 3: strategic implementation

Determining how to get the organisation to where it wants to be (how does the
business get there?)

Strategic implementation is about putting the strategic choice into practice and
developing the strategy. Implementing strategy usually involves change and
change management. Effective leadership is at
the heart of successful change management and
strategic implementation.

The CUEGIS concepts give you a framework or

structure to apply your knowledge to different
contexts. You should become familiar with them
and practise applying them to your learning.

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Business management, Paper 2 HL/SL, Section C - CUEGIS ESSAY

How you work with CUEGIS during the course

Paper 2, section C of the DP business management assessment is a conceptual

extended response question. You are asked to use two of the six concepts of
change, culture, ethics, globalization, strategy and innovation to discuss the
situation and issues faced by real-life organization(s) you have studied during the
course, making use of business management tools, techniques and theories.

Consequently, throughout the business management course, you need to identify

real-life organizations to which these concepts apply. For example, you can
identify organizations facing a period of significant change, cultural challenges,
ethical dilemmas, issues related to globalization, strategic decisions or innovation
opportunities. Although the examination questions in paper 2, section C will ask
you to discuss only two of the concepts in the context of your chosen
organization(s), you should select organizations to which several of the concepts
apply so that you have flexibility to apply your knowledge in a way required by
the specifics of your chosen examination question.

Although large multinational companies are likely to lend themselves well to

paper 2, section C questions, suitably selected national or local businesses or
social enterprises may be conceptually equally interesting.

After selecting an organization, you then need to study the change, culture,
ethics, globalization, strategy or innovation aspects of the case holistically: what
is going on in the organization with respect to, say, cultural clashes or responses
to globalization? Researching answers through concrete events or decisions is
strongly advisable. You should also think which business management tools,
techniques or theories would help you to understand the situation and issues
facing the organization better, and use these to support your analysis. Finally,
you need to identify and examine what other perspectives on the case are
possible, from the viewpoint of different stakeholders within and outside the
organization.

So, over the course, your group will keep a portfolio of one business organization.

You are to find cases (context) about the business which relate to applicable
CUEGIS concepts and the corresponding sub-unit theory of the syllabus (content).

This means that at the end of a sub-unit including a GUEGIS Learning outcome,
you are to find information on that units theory about your company, then find
relevant articles which relate to the concepts and which can have an impact on
your company regarding the selected theory.

We formulate a suitable CUEGIS essay question together or use the chapter AO3
learning outcome as question, and you answer it according to the guidelines
further down in this guide.

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Business management, Paper 2 HL/SL, Section C - CUEGIS ESSAY

What to do
First of all, create a document called CUEGIS.

Then, on a continuous basis, connect context with concepts and content

by performing the following after each sub-unit with a CUEGIS Learning
outcome:

1. Find info on company corresponding to the unit and sub-unit syllabus

and the AO3 Learning outcome. (e.g. 2.1 in the structure below)

2. Identify 2-3 trends/aspects within the specific concept which may have
an impact on the company information found in 1. (e.g. 2.1.1, 2.2.2, 2.2.3
in the structure below)

3. Answer the applicable CUEGIS Learning outcome, i.e. how the trends
in a summarized way may influence and affect the company concerning
the particular sub-units syllabus related information and/or the business
function as a whole. Do this according to the guidelines further down in
this guide (similar to ordinary AO3 answers but more focus on structure
and a section on stakeholder analysis added). (e.g. 2.1.4 in the structure
below)

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Business management, Paper 2 HL/SL, Section C - CUEGIS ESSAY

Use the below structure:

1. Company background.

2. Unit 4 Marketing
2.1 Specific company information relating to syllabus:
- Market size, market growth, market size (4.1 The role of
marketing)
- Marketing objectives (4.1 The role of marketing)
- Marketing strategies, each consisting of market segments,
customer profiles, product position, marketing mix and USP,
targeting strategy, competitive differentiation (4.2 Marketing
planning)
- Sales forecast (4.3 Sales forecasting)
- Market research policy (4.4 Market research)
-
2.2 CUEGIS Learning outcome: How innovation, ethical
considerations and cultural differences may influence
marketing practices and strategies in an organization.
(4.1 The role of marketing)

2.2.1 Two-three trends in innovation which may influence

marketing strategies.
2.2.2 Two-three aspects to ethics which may influence
marketing strategies.
2.2.3 Two-three aspects to cultural differences which may
influence marketing strategies.
2.2.4 CUEGIS essay answer the learning outcome.

2.3 CUEGIS Learning outcome: The impact of changing

technology (innovation) on promotional strategies (such
as viral marketing, social media marketing and social
networking). (4.5 The 4 Ps)

2.3.1 Two-three trends in innovation which may have an impact

on promotional strategies.
2.3.2 CUEGIS essay answer the learning outcome.

2.4 CUEGIS Learning outcome:

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Business management, Paper 2 HL/SL, Section C - CUEGIS ESSAY

3. Unit 2 Human Resources

3.1 Specific company information relating to syllabus:

...

How to answer and write the CUEGIS essay

1. Introduction

Introduce:

the business (some general background information, just some

sentences)
the 2-3 concepts (brief definitions of these, some sentences each)
the content (the theory in terms of e.g.
models/tools/chapters/theories) with definitions

Criterion A: Knowledge and conceptual understanding (AO1)

This criterion addresses the extent to which the student demonstrates knowledge and understanding of
the given concepts and relevant business management content (theories, techniques or tools, depending
on the requirements of the question).

Marks Level descriptor

4 Good understanding of both of the given
concepts is demonstrated. The business
management content selected is relevant,
sufficient and well explained.

2. Main body

Apply PIES:

2.1 Make your POINT and ILLUSTRATE it with examples of your business
(Criterion B)

Criterion B: Application (AO2)

This criterion addresses the extent to which the student is able to apply the given concepts and the
relevant business management content (theories, techniques or tools, depending on the requirements of
the question) to his or her chosen real-world organization(s). The real-world organization(s) must
not be the organization featured in the prescribed case study for paper 1.

Marks Level descriptor

4 The given concepts and relevant business
management content are well applied to
explain the situation and issues of the real-
world organization(s). Examples are
appropriate and illustrative.

2.2. EVALUATE (balanced) in line with the concepts/theory/question

(Criterion A & C)

Criterion C: Reasoned arguments (AO3)

This criterion assesses the extent to which the student makes reasoned arguments. This includes making
relevant and balanced arguments by, for example, exploring different practices, weighing up their

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Business management, Paper 2 HL/SL, Section C - CUEGIS ESSAY

strengths and weaknesses, comparing and contrasting them or considering their implications, depending
on the requirements of the question. It also includes justifying the arguments by presenting reasonable
evidence or other support for the claims made.

Marks Level descriptor

4 Relevant, balanced arguments are made and
these are well justified.

2.3 Discuss the impact on STAKEHOLDERS (Criterion E)

Criterion E: Individuals and societies (additional)

This criterion assesses the extent to which the student is able to give balanced consideration to the
perspectives of a range of relevant stakeholders, including individuals and groups internal and external
to the organization.

Marks Level descriptor

4 Balanced consideration is given to relevant
individual and group perspectives.

3. Conclusion

Make sure you answer the question explicitly, justifying your

answer based on the points made in the main body (Criterion D)

Criterion D: Structure
This criterion assesses the extent to which the student organizes his or her ideas with clarity, and
presents a structured piece of writing comprised of:

1 an introduction
2 a body
3 a conclusion (AO3)
4 fit-for-purpose paragraphs.

Marks Level descriptor

4 All of the structural elements are present, and
ideas are clearly organized.

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 Business management, Paper 2 HL/SL, Section C - CUEGIS ESSAY

Overview CUEGIS Learning outcomes

Unit Sub-unit of the CUEGIS Learning outcome

syllabus
C U E G I S
1. Business 1.3 Organizational The need for organizations to change objectives
organization and objectives and innovate in response to changes in
environment internal and external environments

1.5 External Consequences of a change in any of the

environment STEEPLE factors for a businesss objectives and
strategy
1.6 Growth and The role and impact of globalization on the
evolution growth and evolution (change) of businesses
2. Human 2.1 Functions and How innovation, ethical considerations and
resources evolution of cultural
human resource differences may influence human resource
management practices and strategies in an organization

2.2 Organizational How cultural differences and innovation in

structures communication technologies may impact on
communication in an organization

2.3 Leadership How ethical considerations and cultural

and management differences may influence leadership and
management styles in
an organization

2.6 How innovation, ethical considerations and

Industrial/employ cultural
ee relations (HL differences may influence employeremployee
only) relations in an organization

4. Marketing 4.1 The role of How innovation, ethical considerations and

marketing cultural
differences may influence marketing practices
and strategies in an organization
4.5 The four Ps The impact of changing technology
(product, price, (innovation) on promotional strategies (such
promotion, place) as viral marketing, social media marketing and
social networking)

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 Business management, Paper 2 HL/SL, Section C - CUEGIS ESSAY

4.7 International The strategic and operational implications of,

marketing (HL the role of cultural differences in, and the
only) implications of globalization on, international
marketing (AO3).
5. Operations 5.1 The role of Operations management strategies and
management operations practices for
management ecological, social (human resource) and
economic
sustainability (ethics)
5.6 Research and How pace of change in an industry,
Development (HL organizational culture and ethical
only) considerations may influence research and
development practices and
strategies in an organization

IBO examples of CUEGIS essay questions

With reference to one or two organization(s) that you have studied, discuss how
marketing strategies may differ in two cultures that you are familiar with.

With reference to one organization that you have studied, examine what
changes globalization brings about in the management of human
resources.

With reference to one organization you have studied, compare and contrast
the importance of innovation and ethics for Research and Development
(R&D).

With reference to one or two organizations that you have studied, evaluate
different strategies businesses can adopt to respond to issues of
globalization.

With reference to one organization that you have studied, discuss the
importance of innovation and of ethics in marketing.

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Business management, Paper 2 HL/SL, Section C - CUEGIS ESSAY

Assessment matrix

Mar Criterion A: Knowledge and conceptual Name

ks understanding
0 The work does not reach a standard described by the
descriptors below.
1 Superficial knowledge of the given concepts is
demonstrated. Business management content is not
selected or the content selected is irrelevant.
2 Satisfactory understanding of one or both of the given
concepts is demonstrated. Some business management
content selected is relevant. The relevant content is
satisfactorily explained.
3 Good understanding of one or both of the given
concepts is demonstrated. The business management
content selected is relevant, though it may not be
sufficient. The relevant content is generally well
explained, though the explanation may lack some
depth or breadth.
4 Good understanding of both of the given concepts is
demonstrated. The business management content
selected is relevant, sufficient and well explained.
Mar Criterion B: Application
ks
0 The work does not reach a standard described by the
descriptors below.
1 The given concepts and/or any relevant business
management content are connected to the real-world
organization(s), but this connection is inappropriate or
superficial.

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Business management, Paper 2 HL/SL, Section C - CUEGIS ESSAY

2 The given concepts and/or relevant business

management content are connected appropriately to
the real-world organization(s), but this connection is not
developed.
3 The given concepts and relevant business management
content are generally well applied to explain the
situation and issues of the real-world organization(s),
though the explanation may lack some depth or
breadth. Examples are provided.
4 The given concepts and relevant business management
content are well applied to explain the situation and
issues of the real-world organization(s). Examples are
appropriate and illustrative.
Mar Criterion C: Reasoned arguments
ks
0 The work does not reach a standard described by the
descriptors below.
1 Statements are made but these are superficial.
2 Relevant arguments are made but these are mostly
unjustified.
3 Relevant arguments are made and these are mostly
justified.
4 Relevant, balanced arguments are made and these are
well justified.

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Business management, Paper 2 HL/SL, Section C - CUEGIS ESSAY

Mar Criterion D: Structure

ks
0 The work does not reach a standard described by the
descriptors below.
1 Two or fewer of the structural elements are present, and
few ideas are clearly organized.
2 Three of the structural elements are present, or most
ideas are clearly organized.
3 Three or four of the structural elements are present,
and most ideas are clearly organized.
4 All of the structural elements are present, and ideas are
clearly organized.
Mar Criterion E: Individuals and societies
ks
0 The work does not reach a standard described by the
descriptors below.
1 One individual or group perspective is considered
superficially or inappropriately.
2 One relevant individual or group perspective is
considered appropriately, or two relevant individual or
group perspectives are considered superficially or
inappropriately.
3 At least two relevant individual or group perspectives
are considered appropriately.
4 Balanced consideration is given to relevant individual
and group perspectives.
Tota
l
Max 20

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