Practice 4.6 International marketing (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.
LuminaCare
“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.”
| 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. |
“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.”
“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.”
With reference to Resource 3, describe one HR issue that may be impacting LuminaCare’s ability to scale sustainably.
Explain one financial challenge and one marketing challenge LuminaCare may face if it accepts the concessional loan.
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.
SolvoHealth
| 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 |
With reference to Resource 2, describe one HR issue that may impact SolvoHealth’s service performance.
Explain one marketing challenge and one operations challenge SolvoHealth may face as it expands across Indonesia and Bangladesh.
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.
Global Solar Solutions (GSS)
With reference to business management motivation theory, describe one need that GSS satisfies for rural households requiring solar lighting.
Explain one human resource challenge and one operations challenge GSS may face if it accepts the DRD expansion contract.
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.
SkyGlide Ltd.
SkyGlide Ltd. is a UK-based manufacturer of premium travel backpacks and accessories. In early 2024, the company launched a major expansion into Southeast Asian markets after adjusting elements of its marketing mix to better suit local consumer preferences. The expansion was supported by a new marketing plan focusing on luxury positioning and partnerships with local influencers.
Despite the brand’s strong reputation in Europe, the finance team noticed early signs that sales growth in the new markets was slower than projected. Management has provided the final accounts and key financial data from Q2 2024 for review.
Table 1: Selected Financial Data – SkyGlide Ltd. (Q2 2024)
| Item | Amount (£) |
|---|---|
| Forecasted sales revenue | 4,500,000 |
| Actual sales revenue | 3,800,000 |
| Cost of goods sold (actual) | 2,000,000 |
| Operating expenses (actual) | 1,400,000 |
| Net profit (actual) | — |
| Capital employed | 6,000,000 |
| Current assets | 1,300,000 |
| Current liabilities | 950,000 |
Calculate the sales revenue variance for SkyGlide Ltd. Show all your working.
Calculate the actual net profit and the net profit margin for Q2 2024. Show all your working.
Calculate the return on capital employed (ROCE) for SkyGlide Ltd. Show all your working.
Comment on what the financial results reveal about SkyGlide’s international marketing performance.
Suggest two ways SkyGlide Ltd. could adapt its marketing mix to better meet the needs of international consumers.
SparkFit Apparel Ltd.
| 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.
Using an appropriate business management theory, identify a human need that SparkFit’s products satisfy for their target consumers.
Outline two challenges SparkFit faces in scaling their digital marketing efforts. Support your answer with evidence from the resources.
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.
CleanWave Ltd (CW)
CleanWave Ltd (CW) is a successful manufacturer of sustainable clothing based in Sweden. CW has grown significantly and now plans to expand internationally, entering markets in the United States and South Korea.
To support its international expansion, CW recently adopted a matrix organizational structure, combining functional and geographical divisions. This structure aims to enhance responsiveness to local market conditions. However, employees have reported increased confusion about their roles and responsibilities, creating challenges for communication across departments and geographical locations.
CW invests significantly in research and development (R&D) to maintain a competitive advantage through innovative, eco-friendly materials. The company's current marketing strategy focuses on environmental sustainability and quality. CW's marketing team debates whether to adopt a standardized international marketing approach or adapt specifically to consumer preferences in the US and South Korean markets.
Define the term ‘business’.
Explain two features of a matrix organizational structure at CW.
Explain two benefits for CW of effective communication within its matrix structure.
Explain two reasons why CW invests in research and development (R&D).
Evaluate whether CW should adopt a standardized or adapted international marketing strategy for the US and South Korea markets.
FreshFusion – Scaling a Global Organic Beverage Brand
| 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% |
| Region | Sales Growth Rate | Brand Awareness (%) |
|---|---|---|
| North America | 18% | 75% |
| Europe | 10% | 50% |
| Asia | 5% | 20% |
Using an appropriate business management theory, describe an HR issue that FreshFusion is facing.
Explain two marketing challenges FreshFusion faces in expanding internationally.
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.
FreshFusion – Scaling a Global Organic Beverage Brand
| 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% |
| Region | Sales Growth Rate | Brand Awareness (%) |
|---|---|---|
| North America | 18% | 75% |
| Europe | 10% | 50% |
| Asia | 5% | 20% |
Using an appropriate business management theory, describe an HR issue that FreshFusion is facing.
Explain two marketing challenges FreshFusion faces in expanding internationally.
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.
FreshBlend Ltd (FB)
FreshBlend Ltd (FB) is a beverage company based in Canada specializing in health-focused smoothies and juices. FB currently operates multiple café locations domestically but is considering expanding internationally into the UK and Japan, recognizing significant opportunities in international marketing.
FB generates revenues primarily through direct café sales. Management is exploring additional revenue streams, such as franchising, online orders, and wholesale distribution.
The company recently invested heavily in a new production facility. Although profitability is strong, FB is facing liquidity issues, highlighting the complex relationship between investment, profit, and cash flow.
FB encountered a public relations crisis after a contamination scare affected one product line, emphasizing the importance of effective crisis management. Management has identified internal communication and contingency planning as key factors affecting crisis response effectiveness.
FB uses break-even analysis to determine product pricing and profitability targets. However, management recently expressed concerns about the accuracy and practicality of current break-even models.
Define the term ‘revenue streams’.
Explain the relationship between investment, profit, and cash flow at FB.
Explain two opportunities that international marketing presents for FB.
Explain two factors that could influence the effectiveness of FB’s crisis management.
Recommend two ways FB could improve its marketing planning using break-even analysis to support international expansion.
EcoCharge Ltd (EC)
EcoCharge Ltd (EC) is a private limited company that manufactures and sells electric vehicle (EV) charging stations. The company was founded in the UK in 2016 and has since expanded to France and Germany. EC is now considering further international expansion into the United States (US) and China, where demand for EV infrastructure is rapidly growing.
To finance this expansion, EC is debating whether to convert into a public limited company (PLC) and raise capital through an initial public offering (IPO) or secure a large bank loan. Some managers believe an IPO would provide long-term financial security, while others argue that EC would lose control over decision-making.
EC has relied on a standardized marketing strategy in Europe, promoting its products through digital ads and partnerships with local governments. However, the US and Chinese markets have different consumer behaviors, regulations, and competition levels. Some managers believe EC should adapt its marketing strategy to each market, while others argue that maintaining a standardized approach will help reduce costs and maintain brand consistency.
Additionally, EC is concerned about competition from large multinational companies (MNCs) such as Tesla and BYD, which already dominate EV charging networks in these regions.
Define the term ‘private limited company (Ltd)’.
Explain two benefits for EC of becoming a public limited company (PLC).
Explain two challenges EC may face when competing against large MNCs in the EV industry.
Recommend whether EC should standardize or adapt its marketing strategy for international expansion.