Practice IB Business Management Topic 2.2 Organizational Structure with authentic exam-style questions for both SL and HL students. This question bank focuses on the exact syllabus content for 2.2 Organizational Structure and mirrors Paper 1, 2, 3 style where relevant.
Get instant solutions, detailed explanations, and build confidence with questions aligned to IB examiner expectations.
LuminaCare
(a) With reference to Resource 3, one HR issue that may be impacting LuminaCare’s ability to scale sustainably.
(b) one financial challenge and one marketing challenge LuminaCare may face if it accepts the concessional loan.
(e) one limitation of bureaucracy in SkyGen’s previous structure
(e) one element of the marketing mix that FlexBottle Ltd. has changed, and how this change may support the product launch.
(e) Using the data in Table 1, the labor productivity for the South Store in $ per employee per week. Show all your working.
SkyGen Ltd.
SkyGen Ltd. is a software company that previously operated using a traditional hierarchical structure with centralized decision-making. After losing several talented developers, the company began restructuring project teams and moving toward a flatter matrix system.
SkyGen has also updated its performance appraisal process and begun introducing self-managed development plans. The HR director is piloting new methods for evaluating staff performance while linking role enrichment to innovation output.
Table 1. Statement of Financial Position: SkyGen Ltd. (as at 31 December 2023) (All figures in $m)
| Description | $m |
|---|---|
| Property, plant and equipment | 1,800 |
| Accumulated depreciation | (600) |
| Non-current assets | 1,200 |
| Cash | 300 |
| Debtors | 450 |
| Stock | 250 |
| Current assets | 1,000 |
| Total assets | 2,200 |
| Trade creditors | 200 |
| Short-term loans | 200 |
| Current liabilities | 400 |
| Long-term borrowings | 300 |
| Total liabilities | 700 |
| Net assets | 1,500 |
| Retained earnings | 1,500 |
| Total equity | 1,500 |
Additional information:
(a) units-of-production depreciation for the year
(b) SkyGen Ltd.’s debtor days.
(c) between summative and self-appraisal, using SkyGen Ltd. as context.
(d) how job enrichment and delayering might support SkyGen Ltd.’s move to a matrix structure.
FlexBottle Ltd.
FlexBottle Ltd. is a sustainable consumer goods company that produces reusable, collapsible water bottles aimed at eco-conscious travellers and students. As the company scaled, it shifted from a flat to a functional organisational structure, appointing department heads to oversee operations, marketing, and finance. However, recent employee feedback from the production department suggests growing dissatisfaction due to a lack of communication and involvement in company-wide decisions.
To prepare for the launch of its latest product — a customisable bottle with modular parts — the marketing team developed a new marketing plan, changing several elements of the marketing mix, including pricing, packaging, and point-of-sale materials. The CEO, known for a laissez-faire leadership style, believes teams work best with minimal interference, though motivation among junior staff appears to be declining.
The finance department has prepared a draft statement of profit or loss for Q1 2024, and tasked the marketing and operations interns with completing the missing values using the available data.
Table 1: Financial data for FlexBottle Ltd. (Q1 2024)
| Item | Amount ($) |
|---|---|
| Units sold | 6,000 |
| Selling price per unit | 8.00 |
| Variable cost per unit | 3.00 |
| Salaries (operations + marketing) | 45,000 |
| Advertising and promotion | 30,000 |
| Logistics and warehousing | 12,000 |
| Office rent and utilities | 18,000 |
| Tax rate | 20% |
| Dividends paid | 8,000 |
Figure 1: Statement of profit or loss (partially completed)
FlexBottle Ltd . Statement of profit or loss for the quarter ended 31 March 2024
(a) how the current organisational structure might affect internal communication at FlexBottle Ltd.
(b) one way the leadership style at FlexBottle Ltd. could affect employee motivation.
(c) Using Table 1, the missing fields of the statement of profit or loss in Figure 1. Show all your working.
(d) on what the completed statement of profit or loss reveals about FlexBottle Ltd.'s cost and revenue structure.
Global Solar Solutions (GSS)
(a) With reference to business management motivation theory, one need that GSS satisfies for rural households requiring solar lighting.
(b) one human resource challenge and one operations challenge GSS may face if it accepts the DRD expansion contract.
(c) Using all the resources provided and your knowledge of business management tools and theories, recommend a possible plan of action for GSS over the next five years.
(a) Using Figure 1, the span of control (number of direct subordinates shown) for the Store Manager (North).
(b) one disadvantage of centralized decision-making for GreenPulse Organics as the business expands.
(c) Using Herzberg’s Two-Factor Theory, one hygiene factor and one motivator for staff at GreenPulse Organics.
(d) one potential benefit of delegation for the Store Managers at GreenPulse Organics.
(c) Using the resources and relevant business management tools and theories, recommend a plan of action for LuminaCare over the next five years. Your plan must make a clear recommendation on financing (choose Series A now, choose the concessional loan now, or propose a staged sequence using both at different times) and your choice.
GreenPulse Organics
GreenPulse Organics is a rapidly growing chain of organic grocery stores. The CEO, Amara, currently oversees four regional store managers. As the business has grown, Amara has maintained a centralized approach to decision-making, personally approving all major purchases and marketing strategies for every location.
Recently, the Store Manager (North) reported low morale among shop assistants, noting that while they are satisfied with their wages and working conditions, they feel their work lacks variety and they have little responsibility. To address this and improve operational efficiency, Amara is considering delayering parts of the organization and delegating more authority to her regional managers.
Figure 1: Organizational Chart for GreenPulse Organics
Table 1: Weekly Performance Data
| Metric | North Store | South Store |
|---|---|---|
| Total Weekly Revenue | $45,000 | $38,000 |
| Number of Employees (shop assistants shown in Figure 1) | 8 | 10 |
| Average Weekly Wage | $600 | $600 |
| Item | $ |
|---|
| Sales revenue | __________ |
| Cost of sales | __________ |
| Gross profit | __________ |
| Expenses: | |
| - Salaries | (45,000) |
| - Advertising and promotion | (30,000) |
| - Logistics and warehousing | (12,000) |
| - Office rent and utilities | (18,000) |
| Profit before tax | __________ |
| Tax (20%) | __________ |
| Profit for period | __________ |
| Dividends | (8,000) |
| Retained profit | __________ |
