Practice 4.3 Sales forecasting (HL only) with authentic IB Business Management exam questions for both SL and HL students. This question bank mirrors Paper 1, 2, 3 structure, covering key topics like systems and structures, human behavior and interaction, and sustainability and ethics. Get instant solutions, detailed explanations, and build exam confidence with questions in the style of IB examiners.
Paper
Level
Question 1
HLPaper 3
LuminaCare
Resource 1 – Company profile and financial context
LuminaCare is a Ghana-based, for-profit social enterprise that manufactures solar-powered medical devices for rural clinics and maternal health centers across Sub-Saharan Africa. Its flagship product is a solar fetal heart monitor, which allows midwives to detect complications during pregnancy without relying on grid electricity. The company raised seed capital from impact investors but has now reached an inflection point: demand has grown by 300%, and LuminaCare must decide whether to pursue a $2.5M Series A equity round or take on $1.2M in concessional debt from a development bank.
Resource 2 – CFO’s internal memo (Finance)
“Our burn rate is steady, but we’ve reached our credit limit with suppliers. We operate on 90-day payment terms with clinics, so cash flow is always tight. Series A equity gives us the scale to meet demand and build a second facility—but would dilute founder control and introduce board-level oversight. The concessional loan is low-interest and non-dilutive but comes with covenants: quarterly EBITDA targets, strict capex limits, and donor-style reporting. Any miss could trigger loan restructuring or early repayment.”
Resource 3 – HR performance dashboard (Q1–Q2 2025)
| Metric | Value |
|---|---|
| Staff turnover (last 6 months) | 22% |
| Time to fill technical roles | 49 days (↑ 24%) |
| % of roles with formal job descriptions | 58% |
| Managerial span of control | Avg. 12 direct reports |
| Avg. team engagement score | 67/100 (↓ from 78) |
| The head of HR notes that burnout and unclear career paths are leading to attrition, especially among product engineers and field deployment staff. |
Resource 4 – Marketing team proposal
“Clinics love our mission—but most have no idea who we are until we show up at trade shows. We need to invest in inbound marketing, including a multilingual website, CRM tools, and a referral rewards program for midwives. More crucially, we’re perceived as a donor-funded nonprofit, not a serious tech company. To attract hospital procurement officers and larger buyers, we must reposition the brand to emphasize product quality, not just affordability and ethics.”
Resource 5 – Email thread: CEO to CFO and Marketing Lead
Resource 6 – Feedback from key field partners
“We rely on LuminaCare’s devices, but their response time for repairs has worsened.” “Sometimes we get different pricing from different reps. There’s no standard process.” “I love the mission—but our procurement officer wants a brand that feels serious. A logo change isn’t enough.”
1.[2]
With reference to Resource 3, describe one HR issue that may be impacting LuminaCare’s ability to scale sustainably.
2.[6]
Explain one financial challenge and one marketing challenge LuminaCare may face if it accepts the concessional loan.
3.[17]
Using all the resources provided and your knowledge of business management tools and theories, recommend a possible plan of action for LuminaCare over the next five years.
Question 2
HLPaper 3
SolvoHealth
Resource 1 – Business model and service offering
SolvoHealth is a rapidly growing mobile health company based in Vietnam. It operates a network of telehealth pods—solar-powered kiosks placed in rural communities that allow patients to consult doctors remotely, order basic diagnostics, and schedule medicine delivery.
Each pod includes a screen, smart diagnostic tools, and a local “health navigator” who guides users. SolvoHealth employs:
40 health navigators (frontline staff)
15 remote doctors (contracted)
30 staff at its operations HQ in Ho Chi Minh City (marketing, product, supply chain, HR)
SolvoHealth positions itself as affordable, hyper-local, and technology-enabled. The leadership team now plans to launch 60 pods in Indonesia and Bangladesh over the next 18 months.
Resource 2 – Internal HR report
“Navigator turnover remains high at 28% annually. Interviews cite poor training, emotional fatigue, and a disconnect between field roles and central ops decisions. Navigators receive basic onboarding but no career pathway or local adaptation in training. They also report being treated more as hardware support than as care professionals.
Headquarters recently introduced a CRM-linked performance bonus system based on call completion and upsell conversions—but this has increased pressure on already fatigued staff.”
Resource 3 – Weekly Ops Brief (March 2025)
Visual suggestion: This operations table can be converted into a bar chart or dashboard screenshot to test interpretation skills.
| Metric | Vietnam (live) | Indonesia (pilot) |
|---|---|---|
| Avg. pod uptime | 94% | 71% |
| Avg. medicine delivery time | 26 hours | 61 hours |
| Navigator-reported escalations | 9.2/week | 18.4/week |
| Inventory out-of-stock events | 3.1/week | 7.5/week |
Resource 4 – Brand perception audit (external)
In Vietnam, SolvoHealth scores high for accessibility and usefulness, but low for empathy and personalisation. Many patients feel “talked to” by doctors, not “heard.”
In Indonesia (pilot), users were confused by medical terms and unable to complete video sessions. 47% believed the navigator was “just a receptionist.”
A competitor, SehatNow, offers similar services but invests heavily in navigator-patient relationship-building and community health workshops to build trust.
Resource 5 - Email from Head of Marketing to CEO
Resource 6 – Slack thread
@Linh (HR): “One navigator resigned mid-shift—said she felt like a vending machine operator.”
@Dara (Marketing): “How are we still pushing bonuses on upsells when trust is crumbling?”
@Tung (Ops): “I’ll review the KPIs. But we can’t rebuild loyalty with posters.”
@Dara: “Maybe not. But we can’t scale a service that feels robotic either.”
*Note Slack is an internal team communications tool
1.[2]
With reference to Resource 2, describe one HR issue that may impact SolvoHealth’s service performance.
2.[6]
Explain one marketing challenge and one operations challenge SolvoHealth may face as it expands across Indonesia and Bangladesh.
3.[17]
Using all the resources provided and your knowledge of business management tools and theories, recommend a possible plan of action for SolvoHealth over the next five years.
Question 3
HLPaper 3
Global Solar Solutions (GSS)
Resource 1 – Background of the social enterprise
Three years ago, electrical engineer and entrepreneur Nadira Khan founded Global Solar Solutions (GSS) as a social enterprise in Morocco. Her goal was to provide affordable, modular solar lighting kits to off-grid rural communities. These kits, manufactured at GSS’s urban facility, include rechargeable LED lights and mobile charging ports. GSS reinvests 100% of profits into R&D and local hiring.
GSS operates in partnership with local NGOs and community councils. Its workforce includes 40 technicians and 20 community trainers who educate households about solar usage and maintenance. GSS applies lean production, Kaizen, and maintains a strong internal emphasis on quality control and after-sales support.
Resource 2 – Recent internal report on workforce issues
"High staff turnover and trainer burnout have increased over the past 12 months. Trainers, who work in remote villages for weeks at a time, report fatigue and a lack of recognition. Some have requested additional health support and clearer promotion opportunities."
The HR department suggested non-financial incentives such as increased job rotation and monthly feedback sessions but reported mixed engagement.
Resource 3 – Email from the Director of Rural Development (DRD)
To: nadira.khan@GSS.org
Subject: Expansion proposal
Dear Ms. Khan,
We are impressed by GSS’s impact. The Ministry would like to propose a contract to expand the solar program to 80,000 homes across North and West Africa over five years. Your team would need to train local technicians and build capacity in three new countries. Please note, the contract requires local sourcing of at least 60% of parts.
We will require an initial trial rollout in 5,000 homes and evidence of social impact.
Regards,
Director, DRD
Resource 4 – Extract from a marketing audit summary
GSS currently relies on word-of-mouth and NGO referrals. Its brand is associated with trust and affordability. However, a 2024 brand perception survey in new markets revealed low awareness and concerns about product durability compared to larger multinationals such as SolarX.
GSS’s marketing team is small (3 staff) and has no formal digital strategy. There is also no localized messaging for francophone West African markets.
Resource 5 – Operations update from the Head of Production
Our current facility is operating at 92% capacity. To meet a major scale-up, we would need to either expand production or outsource subassembly. We have identified two regional partners with experience in sustainable component manufacturing. However, we are concerned about quality assurance if we lose full process control.
Resource 6 – Excerpt from a local newspaper article
“Access to solar power has transformed daily life in remote villages. Children now study at night, families charge phones to access mobile banking, and kerosene usage has dropped. However, NGOs report that replacement parts for some GSS kits have been slow to arrive, creating frustrations in isolated regions.”
1.[2]
With reference to business management motivation theory, describe one need that GSS satisfies for rural households requiring solar lighting.
2.[6]
Explain one human resource challenge and one operations challenge GSS may face if it accepts the DRD expansion contract.
3.[17]
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.
Question 4
HLPaper 2
Orbis Vision Ltd.
Orbis Vision Ltd. designs and produces eco-friendly sunglasses. The company launched two major product lines in 2025 — "ReVision" (premium) and "LiteVision" (budget). Management is finalizing year-end accounts and evaluating future marketing strategies.
The finance team reported strong accounting profits but warned that cash reserves were lower than expected. A promotional campaign combining online influencers with television advertising contributed to a rapid but uneven surge in sales.
Below is an extract from Orbis Vision Ltd.'s draft financial statements for 2025:
| Statement of Profit and Loss 2025 (in $'000) |
|---|
| Revenue |
| Cost of goods sold (COGS) |
| Gross profit |
| Expenses |
| Net profit before tax |
| Statement of Financial Position 2025 (in $'000) |
|---|
| Non-current tangible assets |
| Accumulated depreciation |
| Net non-current tangible assets |
| Current assets |
| Current liabilities |
| Non-current liabilities |
| Net assets |
Additional information:
- Equipment valued at $500,000 was purchased at the beginning of the year with an expected useful life of 5 years.
- In Year 1, the equipment produced 5,000 units out of an estimated lifetime production of 25,000 units.
- Cash reserves declined to $200,000 despite recorded profits.
1.[2]
Calculate the missing figures for: (i) Gross profit (ii) Net profit before tax
2.[2]
Calculate the missing figures for: (i) Accumulated depreciation (straight-line method) (ii) Net non-current tangible assets
3.[2]
Calculate the depreciation charge for Year 1 using the units of production method.
4.[2]
Explain one reason why a profitable company like Orbis Vision Ltd. might face liquidity issues.
5.[2]
Identify two types of promotional strategies Orbis Vision Ltd. used based on the case information.
Question 5
HLPaper 2
Verdia Bottling Ltd.
Verdia Bottling Ltd. is a company that produces sustainably packaged bottled water. The company is known for its minimalist branding and sells through both direct e-commerce and supermarket partnerships. In 2025, Verdia launched a nationwide marketing campaign involving billboard advertisements and social media influencer partnerships.
To reduce operating costs, Verdia recently reviewed its production strategy and introduced employee-led proposals to streamline the manufacturing process.
Verdia’s inventory for custom bottle caps is tracked using a stock control chart. Figure 1 shows a standard inventory cycle for one of its most-used components.
**Figure 1: Verdia’s stock control chart **
1.[2]
Referring to Figure 1, state:
(i) The lead time for stock replenishment
(ii) The reorder quantity
2.[2]
Explain one benefit and one limitation of using sales forecasting at Verdia Bottling Ltd.
3.[2]
Identify two types of promotion used in Verdia’s national campaign.
4.[2]
Outline one way lean production may improve Verdia’s operational performance.
5.[2]
Explain why Verdia’s campaign may be considered an example of through the line promotion.
Question 6
HLPaper 3
CultureBean
Resource 1 – Background of the business
CultureBean is a for-profit social enterprise based in Singapore that sources specialty coffee beans from minority-owned micro-farms across Southeast Asia. It operates a hybrid model: a retail café, an e-commerce subscription service, and B2B partnerships with ethical grocers.
CultureBean reinvests 60% of profits into farmer development programs, while retaining 40% for growth. The company’s marketing emphasizes transparency, social impact, and traceability. Its founders are considering a regional expansion.
Resource 2 – Summarized excerpts of CultureBean’s Statement of Profit and Loss and Statement of Financial Position (FY2024)
CultureBean’s web platform needs investment, and its founders are exploring options for financing a $250,000 digital marketing and rebranding campaign.
| Item | Value (SGD) |
|---|---|
| Sales revenue | $1,100,000 |
| Gross profit | $440,000 |
| Net profit before tax | $85,000 |
| Current assets | $210,000 |
| Current liabilities | $105,000 |
| Equity | $300,000 |
| Non-current liabilities | $100,000 |
Resource 3 – Internal marketing audit summary
85% of traffic comes from referral or word-of-mouth.
Website conversion rate is low (1.2%), especially on mobile.
No influencer partnerships or paid ads are in place.
Brand surveys show strong customer trust and authenticity, but low awareness beyond Singapore.
Resource 4 – Excerpt from customer interviews
“I love the mission, but I only heard about CultureBean through a friend. I wish they’d post more on Instagram.”
“Their site feels outdated. On mobile, I couldn’t finish subscribing to the beans.”
“It feels very ethical and personal. But I don’t know if they’re exporting to other countries yet.”
Resource 5 – Offer from an impact investor
Ethos Capital, a regional impact investor, has offered $300,000 in equity financing for a 15% stake. They require:
Quarterly reporting on marketing ROI and brand KPIs
Use of funds strictly for growth-related expenses
CultureBean to expand into two new Asian markets within 24 months
Resource 6 – Marketing team memo
“We believe we can grow significantly with the right storytelling and digital tools. But we currently lack SEO expertise, localized landing pages, or any paid ad funnel. Without funding, we can’t execute. We’d also like to pilot a ‘Farmer Stories’ video series to deepen engagement.”
1.[2]
With reference to the data provided, describe one financial strength of CultureBean that may support expansion.
2.[6]
Explain one marketing challenge and one financial challenge CultureBean may face if it accepts the offer from Ethos Capital.
3.[17]
Using all the resources provided and your knowledge of business management tools and theories, recommend a possible plan of action for CultureBean over the next five years.
Question 7
HLPaper 3
SparkFit Apparel Ltd.
Resource 1 - Newspaper Article
"Local Apparel Brand, SparkFit, Strives to Compete in the Global Activewear Market"
Resource 2 - Financial Statement (Income Statement 2023)
Income Statement for the Year Ending December 31, 2023
Operating Expenses:
| Item | Amount |
|---|---|
| Sales Revenue | £1,200,000 |
| Cost of Sales | £800,000 |
| Gross Profit | £400,000 |
| Expense | Amount |
|---|---|
| Marketing | £50,000 |
| Administrative Expenses | £100,000 |
| Total Operating Expenses | £150,000 |
| Item | Amount |
|---|---|
| Operating Profit | £250,000 |
| Interest | £20,000 |
| Retained Profit | £230,000 |
Despite a 20% increase in revenue compared to 2022, SparkFit faces pressure from production and marketing expenses, impacting profitability.
Resource 3 - Marketing Strategy Flowchart
Market Research - Identify target demographics interested in eco-friendly activewear.
Product Development - Focus on sustainability and quality in material sourcing.
Digital Advertising - Emphasis on social media platforms like Instagram and TikTok.
Influencer Partnerships - Engage with eco-conscious influencers for brand authenticity.
Customer Feedback Loop - Integrate customer feedback for continuous product improvement.
Resource 4 - Consumer Research Summary
A survey conducted by MarketWatch Research among 5,000 UK-based consumers aged 18-34 reveals that 73% of respondents favor brands with sustainable practices. However, only 45% are willing to pay a premium for these options. For SparkFit, this signals both opportunity and challenge, as the eco-conscious market may not guarantee increased sales without pricing strategies that resonate with young buyers.
Competitors have also increased eco-friendly offerings, emphasizing SparkFit’s need for a compelling brand identity and distinct positioning.
Resource 5 - Marketing Campaign Report
1.[2]
Using an appropriate business management theory, identify a human need that SparkFit’s products satisfy for their target consumers.
2.[6]
Outline two challenges SparkFit faces in scaling their digital marketing efforts. Support your answer with evidence from the resources.
3.[17]
Based on the resources and your business knowledge, recommend a comprehensive marketing strategy to improve SparkFit’s brand awareness and competitiveness over the next five years. Your strategy should consider product positioning, digital marketing channels, pricing, and brand partnerships.
Question 8
HLPaper 2
Racing Bandit (RB)
Racing Bandit sells handmade bandanas. RB enjoys strong brand awareness and loyalty.
Table 1: Forecasted figures for RB for the year ending 31 December 2024
| Item | Amount ($ USD) |
|---|---|
| Fixed costs | $15,000 |
| Variable costs per bracelet | $40 |
| Price per bracelet | $70 |
| Number of bracelets produced | 800 |
1.[2]
Define the term brand awareness.
2.[4]
Using Table 1, draw a fully labelled break-even chart, to scale, for RB for 2022.
Question 9
HLPaper 2
EcoHome Innovations (EHI)
EcoHome Innovations (EHI) is a company specializing in sustainable home solutions. The company is planning to launch a new line of energy-efficient home appliances aimed at environmentally conscious consumers.
EHI is focused on conducting comprehensive sales forecasting to predict future sales trends and make informed business decisions. The company faces challenges such as rapid technological advancements, intense competition, and budget constraints for research activities.
1.[2]
Define the term 'sales forecasting'.
2.[4]
Explain two methods of sales forecasting that EHI could use to predict future sales trends for their new line of energy-efficient home appliances.
Question 10
HLPaper 3
FreshFusion – Scaling a Global Organic Beverage Brand
Resource 1 – News Article
🥤 FreshFusion aims to revolutionize the organic beverage industry worldwide!
FreshFusion is a privately owned health beverage company that started in Canada in 2015. The company produces organic, sustainably sourced fruit juices and smoothies, emphasizing health-conscious consumers and eco-friendly packaging.
After rapid growth in North America, FreshFusion has expanded into Europe and Asia, facing significant HR and marketing challenges.
Key Issues:
(1) High employee turnover due to inconsistent leadership styles.
(2) A rigid organizational structure has slowed decision-making and international adaptation.
Weak brand recognition in Asia due to limited marketing research and localization.
FreshFusion’s CEO, Alicia Torres, is considering two strategic changes:
(1) Restructuring the company’s management hierarchy to improve communication and flexibility.
(2) Revising marketing strategies for international expansion, focusing on better sales forecasting, local market research, and targeted branding.
Resource 2 – Internal HR Report on Employee Satisfaction
Key Findings from FreshFusion’s HR Department:
Employees feel disconnected from leadership and desire more autonomy and opportunities for advancement.
| Issue | Percentage of Employees Concerned |
|---|---|
| Lack of career progression | 47% |
| Poor communication from leadership | 39% |
| Motivation issues due to rigid hierarchy | 42% |
| Stress and workload complaints | 35% |
Resource 3 – Sales & Marketing Data
📈 FreshFusion – Sales Performance & Market Research Findings
Key Insights:
(1) Sales growth in Asia is weak due to low brand awareness and lack of localized marketing strategies.
(2) North America remains strong, but competition is increasing.
| Region | Sales Growth Rate | Brand Awareness (%) |
|---|---|---|
| North America | 18% | 75% |
| Europe | 10% | 50% |
| Asia | 5% | 20% |
1.[2]
Using an appropriate business management theory, describe an HR issue that FreshFusion is facing.
2.[6]
Explain two marketing challenges FreshFusion faces in expanding internationally.
3.[17]
Using all the resources provided and your knowledge of business management, recommend a possible plan of action to improve both HR management and marketing strategy at FreshFusion.