Practice 5.9 Management information systems (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
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 2
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 3
HLPaper 2
VisionWare Ltd.
VisionWare Ltd. specializes in AI-powered smart home devices. The company is planning to launch a new product and must choose between two investment projects: Project Alpha and Project Beta.
| Investment Data for VisionWare Ltd. |
|---|
| Initial investment (both projects) |
| Project Alpha: total net cash inflows (4 years) |
| Project Beta: total net cash inflows (3 years) |
| Project Alpha: Yearly inflows: Y1 180,000, Y3 180,000 |
| Project Beta: Yearly inflows: Y1 200,000, Y3 $100,000 |
| Discount rate for NPV |
VisionWare Ltd. is also reorganizing internal reporting, assigning responsibility for controlling spending in different departments.
In addition, management is focused on protecting their proprietary AI algorithms from competitors and using customer data to identify emerging needs before competitors do.
1.[2]
Calculate the payback period for Project Beta.
2.[2]
Calculate the average rate of return (ARR) for Project Alpha.
3.[2]
Calculate the Net Present Value (NPV) for Project Beta, assuming a 10% discount rate and using approximate NPV factors:
- Year 1: 0.91
- Year 2: 0.83
- Year 3: 0.75
4.[2]
Identify the difference between cost centres and profit centres within an organization like VisionWare Ltd.
5.[2]
Suggest one reason why protecting intellectual property is important for VisionWare Ltd.
Question 4
HLPaper 2
NutraBeam Ltd.
NutraBeam Ltd. is a health food company that produces organic protein powders and snack bars using renewable energy. The business relies on a batch production method to manufacture its goods and integrates a customised management information system (MIS) that monitors ingredient inventory levels, order fulfilment, and energy consumption in real time.
In Q2 2024, NutraBeam experienced a serious disruption when a contaminated shipment of chia seeds halted production for two weeks. This led to missed retailer delivery targets and negative media coverage. The company activated its crisis management plan, which included supplier audits, public transparency statements, and temporary outsourcing of production.
NutraBeam’s operations manager is now reviewing the company’s production planning, including safety stock levels and quality control procedures. Meanwhile, the finance department has compiled actual vs. budgeted performance data to assess the financial implications of the crisis.
Table 1: Budgeted vs Actual Figures – Q2 2024
| Item | Budgeted ($) | Actual ($) |
|---|---|---|
| Sales revenue | 1,800,000 | 1,540,000 |
| Cost of goods sold | 960,000 | 1,200,000 |
| Operating expenses | 520,000 | 540,000 |
| Net profit | 320,000 | –200,000 |
1.[2]
Calculate the total adverse variance in costs and the revenue variance for NutraBeam Ltd. in Q2 2024. Show all your working.
2.[2]
Comment on what these figures suggest about the financial impact of the production crisis.
3.[2]
Explain one weakness in NutraBeam’s production planning that may have contributed to the severity of the disruption.
4.[2]
Suggest one way NutraBeam could adapt its MIS to improve production resilience in the future.
5.[2]
Outline how budgeting can support better decision-making during and after a crisis.
Question 5
HLPaper 2
HydroBloom Ltd.
HydroBloom Ltd. is a European company that manufactures automated irrigation systems for agricultural businesses. In early 2024, the company suffered a major cyberattack that disabled its order processing system. As part of its crisis management plan, HydroBloom activated backup manual systems but experienced significant delays in fulfilling customer orders.
Management is now reviewing the company's financial performance and considering investments in a new management information system (MIS). The finance team has prepared the final accounts for 2024.
Table 1: Statement of Profit or Loss for HydroBloom Ltd. for the year ending 31 December 2024 (figures in €000)
| Item | Amount (€000) |
|---|---|
| Sales revenue | 6,800 |
| Cost of sales | 3,900 |
| Gross profit | 2,900 |
| Operating expenses | 2,100 |
| Depreciation expense | 360 |
| Profit before interest and tax | 440 |
| Interest expense | 100 |
| Profit before tax | 340 |
| Tax | 50 |
| Profit for the year | — |
Table 2: Statement of Financial Position for HydroBloom Ltd. as at 31 December 2024 (figures in €000)
| Item | Amount (€000) |
|---|---|
| Non-current assets (at cost) | 2,000 |
| Accumulated depreciation | (720) |
| Net book value of non-current assets | 1,280 |
| Current assets | 1,200 |
| Current liabilities | 900 |
| Long-term loan | 600 |
| Share capital | 500 |
| Retained earnings | — |
Additional Information:
- Machinery was purchased at a cost of €2,000,000, with an estimated useful life of 5 years and no residual value.
1.[2]
Calculate the profit for the year for HydroBloom Ltd. Show all your working.
2.[2]
Calculate the straight-line depreciation charge per year. Show all your working.
3.[2]
Calculate the current ratio for HydroBloom Ltd. Show all your working.
4.[2]
Calculate the retained earnings as at 31 December 2024. Show all your working.
5.[2]
Comment on how the cyberattack may have affected HydroBloom Ltd.’s marketing and financial performance.
Question 6
HLPaper 2
GlobalTech Manufacturing
GlobalTech Manufacturing produces electronic components for multinational companies. The business is considering expanding its operations by opening a new facility to meet increasing demand. Management has shortlisted two potential locations: (1) a developed country with excellent infrastructure but high labor costs, and (2) a developing country with lower operational costs but limited access to skilled labor and reliable utilities.
GlobalTech also plans to implement a new management information system (MIS) to improve coordination between its existing facilities and the new location. The MIS will streamline operations by integrating production, inventory, and logistics data in real-time.
Management must decide how to balance the operational benefits of the MIS with the strategic considerations of selecting the optimal location.
1.[2]
Outline two factors GlobalTech should consider when selecting the location for its new facility.
2.[4]
Analyze the benefits of implementing a management information system (MIS) for GlobalTech’s operations.
3.[4]
Explain the challenges GlobalTech may face in managing operations if it chooses the developing country as its location.
4.[10]
To what extent should GlobalTech prioritize implementing the MIS over its location decision to ensure operational efficiency and long-term success?
Question 7
HLPaper 3
Alpha Robotics – Optimizing HR and Operations for Growth
Resource 1 – News Article
Alpha Robotics Struggles with HR and Operational Efficiency
Alpha Robotics, a technology firm specializing in AI-powered industrial robots, is experiencing rapid expansion as demand for automation increases globally. The company was founded in 2015 and has since grown to 2,500 employees across four locations: the United States, Germany, Japan, and India.
Key Challenges:
(1) HR management issues – Employees complain about unclear leadership, poor communication, and lack of motivation due to a highly hierarchical structure.
(2) Production inefficiencies – The company’s batch production method is increasing lead times and reducing product quality.
(3) Location challenges – With rising costs in the US and Germany, Alpha Robotics must decide whether to expand in India (lower labor costs) or develop a new R&D facility in Singapore.
CEO Daniel Carter is considering the following strategic changes:
(1) Restructuring the organization to improve communication and motivation.
(2) Shifting to lean production and just-in-time (JIT) inventory management.
(3) Relocating part of production to India or Singapore while maintaining efficiency.
Resource 2 – Internal HR Survey Results
Key Insights:
(1) Employees feel disconnected from leadership, affecting productivity.
(2) A lack of career growth opportunities is reducing motivation and increasing turnover.
(3) Middle management struggles with effective communication due to a rigid hierarchical structure.
| Issue | Percentage of Employees Concerned |
|---|---|
| Lack of leadership clarity | 42% |
| Poor communication from managers | 38% |
| Low motivation and workplace morale | 45% |
| Limited career advancement | 41% |
Resource 3 – Cost-Benefit Analysis for Production Relocation
Alpha Robotics – Cost Analysis for Facility Expansion
Key Considerations:
(1) India offers lower costs, but efficiency gains are lower compared to Singapore.
(2) Singapore provides greater efficiency but has significantly higher setup costs.
| Location | Labor Costs per Hour ($) | Setup Costs ($M) | Expected Efficiency Gains |
|---|---|---|---|
| India | 12 | 30 | 10% increase |
| Singapore | 22 | 50 | 18% increase |
1.[2]
Using an appropriate business management theory, describe an HR challenge that Alpha Robotics is facing.
2.[6]
Explain two operational challenges Alpha Robotics faces in improving production efficiency.
3.[17]
Using all the resources provided and your knowledge of business management, recommend a possible plan of action to improve both HR and operations management at Alpha Robotics.
Question 8
SLPaper 2
NaturFresh Cooperative (NFC)
NaturFresh Cooperative (NFC) is an agricultural cooperative based in Spain, jointly owned by local farmers. NFC markets fresh organic produce across Europe, experiencing significant recent market growth due to rising consumer demand for healthy foods.
To maintain its competitiveness, NFC emphasizes its unique selling proposition (USP) of providing fresh, sustainably grown, locally sourced produce. NFC regularly conducts primary market research to better understand customer preferences and refine its product offerings.
NFC’s financial team highlighted concerns about low liquidity ratios, which management plans to address urgently. They also recognize that the cooperative’s strong reputation and brand name are critical intangible assets essential to sustaining growth.
To further enhance its competitive position, NFC is considering implementing a comprehensive customer loyalty program, encouraging repeat purchases and strengthening customer relationships across its European markets.
1.[2]
Define the term ‘primary market research’.
2.[4]
Explain two advantages of NFC operating as a cooperative.
3.[4]
Explain two reasons why intangible assets are important for NFC’s continued growth.
4.[4]
Explain two benefits to NFC of implementing a customer loyalty program.
5.[10]
Recommend two strategies NFC could use to improve its liquidity ratios without compromising its USP or market growth.
Question 9
HLPaper 2
TechNova Innovations
TechNova Innovations is a mid-sized technology company specializing in developing software solutions for small and medium-sized enterprises. The company has built a strong reputation for its innovative products and excellent customer service. However, TechNova recently faced a major crisis: a cybersecurity breach that compromised customer data. The breach caused a temporary shutdown of operations and significant reputational damage.
To prevent such crises in the future, the company is considering two strategies: (1) investing in advanced management information systems (MIS) to strengthen data security and streamline operations, or (2) increasing its research and development (R&D) budget to create more secure and innovative software products.
As part of its recovery, TechNova is also revising its contingency planning processes to improve its response to future crises.
1.[2]
Outline two ways that management information systems (MIS) could help TechNova Innovations improve its data security and operational efficiency.
2.[4]
Explain the importance of contingency planning for TechNova Innovations in managing crises like the cybersecurity breach.
3.[4]
Explain the advantages and disadvantages of increasing the R&D budget to improve TechNova’s product offerings and competitive position.
4.[10]
To what extent should TechNova prioritize investing in MIS over R&D to address the challenges it faces?
Question 10
HLPaper 2
Urban Rides (UR)
Urban Rides (UR) is a start-up established by Alex, an entrepreneur passionate about sustainable transport. UR offers electric bike rentals in a busy metropolitan area, targeting commuters and tourists who want an eco-friendly and convenient mode of transportation.
The bikes can be rented through a mobile app, which also provides information on bike availability, charging stations, and route suggestions. The electric bike market is growing rapidly, but UR faces stiff competition from established companies offering similar services.
Additionally, there are significant costs associated with purchasing and maintaining the bikes, as well as complying with local government regulations for operating rental services. To differentiate UR, Alex is considering offering subscription plans with discounted rates, as well as introducing guided city tours.
1.[4]
Identify and explain two sectors of the economy in which UR operates.
2.[4]
Analyze two challenges that Urban Rides might face as a start-up in the electric bike rental market.
3.[8]
Discuss how Alex’s entrepreneurial skills could contribute to overcoming the challenges faced by Urban Rides.