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.
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
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
BobaPop Ltd.
BobaPop Ltd. is a rapidly growing bubble tea company based in Singapore. The company is planning to enter two new overseas markets: Australia and South Korea. Management collected the following financial data for 2025:
Table 1. Financial and Market Research Data for BobaPop Ltd. for 2025 Q1
| Descriptor | Value |
|---|---|
| Acid test (quick) ratio | 0.7 : 1 |
| Debtor days | 78 days |
| Price elasticity of demand (PED) | –2.1 |
| Market research methods used | Surveys, focus groups |
BobaPop Ltd. is concerned about its liquidity position and slow debtor collection. Managers are considering expanding primary market research activities before finalizing entry strategies for these international markets.
1.[2]
State the acid test (quick) ratio for BobaPop Ltd. and what this implies about BobaPop’s financial position
2.[2]
Suggest one strategy that BobaPop Ltd. could use to improve its debtor days.
3.[2]
Identify two primary market research methods, other than surveys and focus groups, that BobaPop Ltd. could use before international expansion.
4.[2]
Explain the significance of BobaPop Ltd.'s price elasticity of demand (PED) being –2.1.
5.[2]
Suggest one opportunity and one threat BobaPop Ltd. might face when entering new international markets.
Question 4
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 5
HLPaper 2
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.
1.[2]
Define the term ‘business’.
2.[4]
Explain two features of a matrix organizational structure at CW.
3.[4]
Explain two benefits for CW of effective communication within its matrix structure.
4.[4]
Explain two reasons why CW invests in research and development (R&D).
5.[10]
Evaluate whether CW should adopt a standardized or adapted international marketing strategy for the US and South Korea markets.
Question 6
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.
Question 7
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.
Question 8
HLPaper 2
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.
1.[2]
Define the term ‘revenue streams’.
2.[4]
Explain the relationship between investment, profit, and cash flow at FB.
3.[4]
Explain two opportunities that international marketing presents for FB.
4.[4]
Explain two factors that could influence the effectiveness of FB’s crisis management.
5.[10]
Recommend two ways FB could improve its marketing planning using break-even analysis to support international expansion.
Question 9
HLPaper 2
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.
1.[2]
Define the term ‘private limited company (Ltd)’.
2.[4]
Explain two benefits for EC of becoming a public limited company (PLC).
3.[4]
Explain two challenges EC may face when competing against large MNCs in the EV industry.
4.[10]
Recommend whether EC should standardize or adapt its marketing strategy for international expansion.
Question 10
HLPaper 3
LumiLens Ltd.
Resource 1 - Press Release
"LumiLens Ltd Expands into Virtual Try-On Tech for Global Market"
Resource 2 - Social Media Analysis
An analysis of LumiLens’s social media engagement for 2023 reveals strong interest in the company’s digital innovations and luxury positioning. Popular posts featured influencer collaborations and glimpses into the brand’s design process.
Posts using the #LumiLensVirtualTry have seen a 20% higher engagement rate than regular product posts. The platform has over 500,000 followers across Instagram and TikTok, where it frequently posts curated content appealing to younger demographics.
Resource 3 - Financial Statement (Extract)
Profit and Loss Account for Year Ending 31 December 2023
| Category | £ |
|---|---|
| Sales Revenue | £15,500,000 |
| Cost of Sales | £8,000,000 |
| Gross Profit | £7,500,000 |
| Marketing Expenses | £1,500,000 |
| Operating Expenses | £3,000,000 |
| Net Profit | £3,000,000 |
The company allocated 10% of its total budget to marketing, largely in digital campaigns and influencer partnerships aimed at boosting brand awareness in the luxury and tech-savvy sectors.
Resource 4 - Market Research Report
Title: "Global Eyewear Market Trends - 2024"
Resource 5 - Customer Feedback Survey Summary
Feedback from a sample of LumiLens’s online customers shows an overwhelmingly positive response to the virtual try-on feature. While 76% of respondents indicated they would “definitely recommend” the virtual try-on, some customers expressed privacy concerns over camera permissions.
Additionally, many noted that this feature encouraged them to try bold styles they otherwise wouldn’t consider.
1.[2]
Using an appropriate business management theory, describe a human need that LumiLens is addressing with its virtual try-on technology.
2.[6]
Identify and explain two challenges LumiLens may face as it integrates virtual try-on technology into its business model. Support your answer with information from the case study and resources provided.
3.[17]
Using all the resources provided and your knowledge of business management, recommend a marketing strategy to help LumiLens increase its market share in the global eyewear industry over the next five years. Your response should consider target market segmentation, digital marketing tactics, and competitor positioning.