Business Management
Internal Assessment
Higher Level
Session: May 2022
Research question: “Should COMPANYNAME increase its profit potential
by exporting to the European or Asian markets?”
Candidate code:
Commentary: 1971 words
Executive Summary: 185 words
Research proposal: 487 words
1|P ag e
,Research proposal
Research Question:
Should COMPANYNAME increase its profit potential by exporting to the European (Spain, UK,
France, Italy and Germany) or Asian markets (China)?
Rationale:
With the recent pandemic as well as an already questionable economic situation in
COUNTRYNAME, COMPANYNAME has seen a significantly steep decline in sales
throughout local customers. This has forced the company to search overseas for potential
customers to limit short term damage, and strive for potential profits in medium and long term.
Currently, they are looking at expanding outside of the Middle East to markets in either Europe
or Asia where export stands at pretty low margins in both of those continents. Asia gives a
chance at untapped developing markets, which can foster opportunities for companies in Asian
countries that are looking for cheap promotional items suppliers with very competitive pricing,
which is exactly what COMPANYNAME offers. European countries however provide a
developed stable market with established corporations which can limit risk for the company. As
such, this investigation will revolve around both markets to strive towards finding an answer in
order to support the company in finding the best fitting answer.
Theoretical framework:
2 sources of primary along with one source of secondary research were used in this investigation
to finalise the best fitting conclusion for the client. The interview, which is the sole primary
research option, helped give a general assessment of the company as well as the goals and
2|P ag e
,possible solutions for the issue in hand. The company’s balance sheet was also looked over in
order to have an idea of the company’s general financial position. When it comes to the
secondary sources used, internet sources were used to assess the economy of COUNTRYNAME
and the impact of the COVID-19 pandemic on it. The IB business management book was also
used to ensure proper use of tools in this research. The aim of this investigation is to conclude
which option would better suit COMPANYNAME and improve their financial situation.
Areas of the syllabus covered: 1
1.3 Organizational objectives
1.7 Organizational planning tools
1.7 Organizational planning tools
3.8 Investment appraisal
4.4 Marketing
Primary sources of data:
- Interview with CEO and manager to gather financial data as well as other important
aspects of the company to provide a good judgement.
- Balance sheet to help assess the situation of COMPANYNAME by comparing revenues
between the financial years of 2019 and 2020.
Secondary sources of data:
- IB Business management book.
1
Business Management, Course Companion, Oxford Press, 2014 edition ISBN 978-0-19-839281-1
3|P ag e
, - Economic websites to gain information about the economic situation of
COUNTRYNAME.
Justification of the methods and tools used:
- Decision tree: Gives quantitative analysis of the financial return on the two options of
either exporting to Europe or Asia.
- Investment appraisal: Presents the payback period, average rate of return and net present
value to evaluate the feasibility of each solution.
- SWOT analysis: Outlines and analyses the strengths, weaknesses, opportunities and
threats COMPANYNAME has in its current state.
- Force field analysis: Shows the restraining and driving forces of both options to help
compare Europe and Asian export markets.
Expected Difficulties and Feasible Solutions:
Expected Difficulties to be Feasible Solutions
Encountered
Sparsity of data related to company Request company papers such as
and local economy. balance sheets.
Use websites such as the world
bank website.
Confidentiality of financial data I’ve accepted the terms of the
4|P ag e
Internal Assessment
Higher Level
Session: May 2022
Research question: “Should COMPANYNAME increase its profit potential
by exporting to the European or Asian markets?”
Candidate code:
Commentary: 1971 words
Executive Summary: 185 words
Research proposal: 487 words
1|P ag e
,Research proposal
Research Question:
Should COMPANYNAME increase its profit potential by exporting to the European (Spain, UK,
France, Italy and Germany) or Asian markets (China)?
Rationale:
With the recent pandemic as well as an already questionable economic situation in
COUNTRYNAME, COMPANYNAME has seen a significantly steep decline in sales
throughout local customers. This has forced the company to search overseas for potential
customers to limit short term damage, and strive for potential profits in medium and long term.
Currently, they are looking at expanding outside of the Middle East to markets in either Europe
or Asia where export stands at pretty low margins in both of those continents. Asia gives a
chance at untapped developing markets, which can foster opportunities for companies in Asian
countries that are looking for cheap promotional items suppliers with very competitive pricing,
which is exactly what COMPANYNAME offers. European countries however provide a
developed stable market with established corporations which can limit risk for the company. As
such, this investigation will revolve around both markets to strive towards finding an answer in
order to support the company in finding the best fitting answer.
Theoretical framework:
2 sources of primary along with one source of secondary research were used in this investigation
to finalise the best fitting conclusion for the client. The interview, which is the sole primary
research option, helped give a general assessment of the company as well as the goals and
2|P ag e
,possible solutions for the issue in hand. The company’s balance sheet was also looked over in
order to have an idea of the company’s general financial position. When it comes to the
secondary sources used, internet sources were used to assess the economy of COUNTRYNAME
and the impact of the COVID-19 pandemic on it. The IB business management book was also
used to ensure proper use of tools in this research. The aim of this investigation is to conclude
which option would better suit COMPANYNAME and improve their financial situation.
Areas of the syllabus covered: 1
1.3 Organizational objectives
1.7 Organizational planning tools
1.7 Organizational planning tools
3.8 Investment appraisal
4.4 Marketing
Primary sources of data:
- Interview with CEO and manager to gather financial data as well as other important
aspects of the company to provide a good judgement.
- Balance sheet to help assess the situation of COMPANYNAME by comparing revenues
between the financial years of 2019 and 2020.
Secondary sources of data:
- IB Business management book.
1
Business Management, Course Companion, Oxford Press, 2014 edition ISBN 978-0-19-839281-1
3|P ag e
, - Economic websites to gain information about the economic situation of
COUNTRYNAME.
Justification of the methods and tools used:
- Decision tree: Gives quantitative analysis of the financial return on the two options of
either exporting to Europe or Asia.
- Investment appraisal: Presents the payback period, average rate of return and net present
value to evaluate the feasibility of each solution.
- SWOT analysis: Outlines and analyses the strengths, weaknesses, opportunities and
threats COMPANYNAME has in its current state.
- Force field analysis: Shows the restraining and driving forces of both options to help
compare Europe and Asian export markets.
Expected Difficulties and Feasible Solutions:
Expected Difficulties to be Feasible Solutions
Encountered
Sparsity of data related to company Request company papers such as
and local economy. balance sheets.
Use websites such as the world
bank website.
Confidentiality of financial data I’ve accepted the terms of the
4|P ag e
