Business Management CUEGIS

Business Management CUEGIS
- Crowdsourced by IB Business Management Students -
Change, Culture, Ethics, Globalization, Innovation & Strategy

Paper 2 Section C - 1st May 2017
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Be sure to visit the Paper 2 Crowdsource too: goo.gl/3jGfIw
And the Case Study Crowdsource as well: https://goo.gl/Z2GfLj
Original Reddit thread: https://redd.it/669uiv

Created by: /u/valley09 - IBSupplies2017
Business Management CUEGIS Guidance -2-
Table of contents:
Useful Links 3
Useful CUEGIS Websites 3
Examples from previous exams: 3
Youtube videos worth watching 3
General Business Management Links: 3
CUEGIS Notes 4
If you have any notes you are willing and able to share these, please do so here! 4
General advice on how to answer the CUEGIS question: 6
Section C Paper 2 Sample Questions: 8
Sample given to teachers 9
Section C Assessment Details 12
Section C Mark Scheme Criteria + Examples 13
A more general advice on how to structure a section c essay. 19
CUEGIS NOTES by Naomi Gajjar 20
Crowdsourced by IB Business Management Students for May 2017 Examination

Please contribute to this document by adding your study materials/notes/resources/advice
All copyrights belong to their respective owners
Useful Links
Post-Exam Discussions
https://redd.it/68suhk (HL)
https://redd.it/68suj5 (SL)
Useful CUEGIS Websites

CUEGIS done on McDonalds, Starbucks and Apple:
https://docs.google.com/document/d/1QRgXL-0fwFT0Ez4OWRkXFtDovjodk3u-IAEsPCmel3c/e
dit
Mr. Brackens CUEGIS Notes:

https://sites.google.com/site/brackensibbusiness/cuegis-concepts
CUEGIS Question Bank:

https://drive.google.com/open?id=0B79nTLhL8-SxNTdYQlY3VjNnTWs
Examples from previous exams:

https://ibpublishing.ibo.org/server2/rest/app/tsm.xql?doc=d_3_busmt_tsm_1402_1_e&part=2&c
hapter=1
Youtube videos worth watching
General Business Management Links:

Group 3 BM General Study Materials:
https://docs.google.com/document/d/1NP0506f5-dU9EF05w_9r5SyOUPf85LWVvI5EGYGeytc/e
dit
Business Management Case Study 2017 Resources (Utopia):

https://docs.google.com/document/d/1F0sjXcbFNVyKOzmkNihknt_AvLj4PIvOYNwjsv0T6nk/edit
?usp=sharing

CUEGIS Notes
If you have any notes you are willing and able to share these, please do so here!
Definitions
Change: The adaptation of business objectives, strategies and operations to accommodate

changes, both internal and external, within the dynamic business environment
Culture: Ideas, customs and social behaviour derived from different values and backgrounds
that influence stakeholder motivations and decisions
Ethics: The socially accepted moral principles that govern behaviour and decision-making
Globalisation: The increase in cross-border trade and the gradual development towards a
unified, integrated and international market
Innovation: The introduction and implementation (commercial pioneering) of new, radical and
improved products, processes or ideas
Strategy: Significant long-term planning decisions that organisations make in order to meet the
needs and wants of their stakeholders

Budgeting and the CUEGIS concepts

● Change - the changing business environment may require adjustments to corporate
plans and budgets, but does this mean that exible budgets are better than zero
budgeting? How do changes caused by natural disasters impact the budgeting of
businesses?
● Culture - how does corporate culture and cross-border cultures impact how budgets are
set and managed? How does organizational culture and the impact of the leader
inuence budgeting?
● Ethics - all budget holders are responsible for the money in their organization, yet this
responsibility carries ethical considerations. History has shown that budgetary powers
have corrupted many business leaders, across all industries.
● Globalization - the rise in cross-border trade due to globalization has enabled larger
scale operations, enabling rms to benet from economies of scale. Whilst this reduces
the average costs of production, exchange rate uctuations can cause problems for
budget holders. How does the drive of globalization and overseas operations impact on
the budgets of businesses?
● Innovation - to what extent does budgeting constrain innovation?
● Strategy - budgets are integral to any business strategy as nance is needed to fund all
business ventures, eg. a growth strategy entails larger budgets to be allocated to nance
larger scale operations.

General advice on how to answer the CUEGIS question:

Submitted by /qaninkey
We've been practicing CUEGIS questions for above a year and I usually score between 14-18 points
depending on how prepared I am for the exam. My format is based on the rubrics. I'm going to use a
question I recently answered on my mock exams last month. I scored a 16/20 on it. The question
was 'With reference to an organization of your choice, examine the impact of globalization on
organizational change.' I used Starbucks as my organization.
Introduction: 1. Define Globalization 2. Define Change 3. Introduce Starbucks: international

multi-chained cafe, tertiary sector, founded in Seattle, products. 4. A sentence or two on how
globalization and change have impacted Starbucks (in which business functions) 5. Something like a
thesis: Starbucks, upon globalizing, has undergone great changes in their operations management
and marketing methods.
Body 1: 1. An example of how globalization/change have impacted Starbucks: In 2009, there was
an uproar for companies to adapt fair trade schemes. Starbucks claims that their operations
encompass of 99% fair trade scheme and they have increased their wages. (I'm explaining it here
briefly, maybe have 5-6 sentences on the whole scenario and Starbucks steps and reasons as to
why they adapted fair trade schemes) 2. Impact of this change on stakeholders. I chose the
management of Starbucks and farmers. Talk about the advantages and disadvantages of this
change on both stakeholders.
Body 2: 1. When Starbucks expands into Germany and France they had issues with their cash flow
initially. This is because in these countries cheaper goods don't sell well. Starbucks had to apply
price skimming so the product had more 'value' in the consumer's eyes. In France, they introduced
snacks such as sandwiches and croissants to attract more consumers. Finally, they had a
DIY/customize your own drink option. (Again, explain this more in-depth) 2. Now determine the
impact on the stakeholders. I chose consumers and management. Talk about the advantages and
disadvantages of this change due to globalization on both stakeholders.
Body 3: 1. Describe the short-run and long-run impacts of change due to globalization as a whole.
Conclusion: 1. Have 3-4 sentences restating your thesis, which business functions this change
impacts, and was Starbucks successful with these changes or not.
I've been using this format for a while and I feel it covers all the requirements in the rubric. Don't
forget to apply your theory when discussing advantages and disadvantages to stakeholders and the
long-run and short-run impact; it makes your argument stronger. Also, have a few back up

organizations. I've got Starbucks, Apple, Amazon, and H&M. Good luck! I hope this helps even a
little :)
Examiner tip (OSC Study guide)

It is essential, therefore, that the case studies you select, and revise, provide a range of issues
that can exemplify the six concepts and can be applied to a business function, such as
marketing and HRM. Case studies relating to multinational corporations offer greater depth and
breadth to support an answer across several concepts and business functions than smaller,
local businesses. Whichever case studies you revise, you must be able to:
● identify the context and issues raised by the case study or question stimulus
● explain how these issues relate to different areas of the syllabus content and the six
concepts
● apply the business tools, techniques and theories that might be appropriate for
understanding the issues raised in the case study or question stimulus
/u/bunnysanni
I have a spreadsheet which separates the units and CUEGIS concepts for HSBC (I made this
but I actually use Amazon for my answers so I’m happy to share the link for it). It’s not an
in-depth analysis of actual theory but more like facts and how they relate to the particular topic
but it doesn’t have notes for operations and is in a PDF format. This is the link:
https://drive.google.com/open?id=0B4QhfQDAOmZab1ZlRUg2UUk1M1U
Also some advice my teacher gave me on my attempts was to focus more on theory than what’s
actually happening. So like it’s not a test about how well you know the company but about how
well you know business theory and tools. So in the case of Amazon for example, you should talk
about how it uses predatory pricing (this is what the business actually does), and then you
should go into theory so: predatory pricing helps eliminate competitors (go into depth about this
stakeholder) and how it may be perceived as products of low quality by consumers (due to very
low prices and talk about this stakeholder). But then you can also say that Amazon has a large
customer base in America, and so as a result, lower prices don’t necessarily translate into lower
quality for them due to established brand loyalty (this is the theory!!) etc. etc.
I hope it’s helpful! :) If you have any questions just send me a message on reddit, and i’ll try to
reply as soon as I can.

Section C Paper 2 Sample Questions:

- With reference to one or two organizations of your choice, evaluate different strategies
that organizations can implement to respond to the impact of a sudden change in the
external environment.
- With reference to an organization of your choice, discuss the importance of innovation

and change on its production processes.
- With reference to an organization of your choice, examine the effects of globalization

on the ethics of its human resource management.
- With reference to an organization of your choice, discuss how marketing strategies may
vary in two cultures or two countries with which you are familiar.
- With reference to an organization of your choice, examine how innovation and change
have brought about a change in human resource management.
- With reference to an organization of your choice, examine how promotion in the

marketing mix is affected by culture and e
thics.
- With reference to an organization of your choice, discuss the importance of innovation

and globalization in the company’s product strategy.
- With reference to an organization of your choice, examine the impact of globalization

and ethics on the extended marketing mix.
- With reference to an organization of your choice, compare and contrast the importance
of innovation of culture for research and development.
- With reference to an organization of your choice, discuss the influence of ethical

considerations and cultural differences on employer-employee relationships.
- ultural
With reference to an organization of your choice, examine how innovation and c
differences may influence marketing strategies.

Sample given to teachers

The Question:
With reference to an organization of your choice, evaluate different strategies businesses can
adopt to respond to issues of globalisation.
The Answer:
Kettlinger Furniture Company (KFC) of Savannah, Georgia in an interesting example of how

one organization developed several strategies in response to issues stemming from the
globalization of furniture manufacturing by such large firms as Ikea. In this case, globalization
refers to significant growth of a small number of furniture manufacturers who now sell in most
countries of the world. Benefiting from economies of scale and able to set up manufacturing
facilities where costs are low, companies such as Ikea can manufacture furniture at significantly
lower prices than small manufacturers like Kettlinger. These small companies have to develop
successful strategies --long-term plans to make the most efficient use of resources and to gain
competitive advantage to compete in this environment or they will go out of business. As sales
gradually decline, their products become un-competitively priced, and employees lose
motivation as they see the company’s position deteriorate. KFC is one example of a small
manufacturing company that developed two strategies, one for marketing and one for human
resources, so that the company could survive in the twenty-first century. It went local.
Kettlinger is an old company that thrived for many years before it almost filed for bankruptcy in
1997. Founded in 1768, the business originally manufactured high quality furniture for sale to
wealthy Georgians. After World War II, however, the company decided to widen its product
range and expand. America was experiencing vast social changes. Americans were building
many new houses and, for the first time, “suburbs” --and all these houses needed furniture.
Throughout the 1950s and 1960s, this move into large-scale manufacturing was very
successful, and the company’s sales and profits grew significantly.
In the 1980s, however as the US economy started to weaken because of global competition
from Europe and Japan, the mass manufacturing at KFC began to experience difficulties. With

Business Management CUEGIS Guidance - 10 -
each year, profits were lower and lower. Frank Kettlinger, CEO in 1997, contemplated filing for
bankruptcy. However, closing down his family’s two hundred year-old business would have
been personally devastating for him. As an individual, he would feel like a failure.
Instead Kettlinger decided to re-focus the business, and he did so with two strategies: one for
marketing and one for human resources. The marketing strategy was straight-forward: KFC
would return to being a small manufacturer of European and colonial style hand-crafted
furniture. This was a “niche” strategy, but it would achieve several benefits for the company: It
would build on its historic strengths and allow the business to remain open and provide a living
for family members. The big factory facility was sold to pay off debts, and all four Ps of the
marketing mix were realigned to support the shift: a narrowing of the product range, an increase
in pricing (to cover the higher costs of hand crafted manufacturing and for psychological affect),
promotion shifted to advertising in high-end architectural magazines.
The more complicated problem for the business was human resources, as many employees
were unqualified to make really high quality furniture. KFC adopted a competency-based
management strategy that assessed the current work force, analyzed the needs according to
the revised strategy of the business and then started pulling in various process to provide KFC
the right workforce: letting go of workers no longer needed, re-training the select few that would
remain, recruiting certain employees from other companies when specialized talent was
required. Because training would now become a major part of employment at KFC,the company
carefully selected employees not only for their talents as workers, but also for their loyalty to the
firm. Although Frank regretted the toll on individual employees who lost their jobs, he know that
if the company did not make these major changes, all employees would have soon been out of
jobs anyway. At least some would keep their jobs and, actually benefit from the new marketing
and human resource strategies.
Though it was a very difficult process for KFC and the Kettlinger family to restructure their
business, the pressures of globalization left it almost no choice. By the 1990s, KFC was too
small to compete with companies like Ikea. By revising its marketing strategy, the company
returned to its niche marketing, where it could compete. “Going local” in response to

globalization also meant changing attitudes towards workers: relationship with workers was now
characterized by a paternalistic leadership style, two way loyalty, and a “we are all a family”
environment. As KFC shed its mass manufacturing past, the “go local” attitude began to show
up in all aspects of operations, including things like which suppliers were used and the types
and variety of below-the-line promotions, which now almost always had a local community
building character. Globalization is killing many small organizations, but some are successfully
responding by becoming smaller, more focused,, more local. KFC is one such firm.

Section C Assessment Details

IB Business Management Guide
Section C
- The principal focus of questions in this section is on the concepts of change, culture,
ethics, globalization, innovation and strategy that underpin the business management
course.
- While the principal focus for each question is on two of the concepts, students need to
draw on their knowledge of other relevant topics in the syllabus.
- There is no stimulus material provided for the questions.
- Students are required to address the question in relation to at least one real-world
organization but may use information from a range of sources, which may include
real-world case studies examined in class and IA research. The real-world organization
that students use in their responses must not be the case study organization featured in
paper 1.
- The response should consider the perspectives of individuals and societies on which the
real-world organization impacts.
- Students answer one extended response question from a choice of three.
- Assessment objective level 3 (AO3) command terms are used in the questions.
- The questions require: knowledge and understanding; application and analysis;
synthesis and evaluation; and a variety of appropriate skills.
- Each question is worth 20 marks.
- Section C is worth a total of 20 marks.
- For section C, marks are allocated using assessment criteria. Marking notes included in
the markscheme give additional guidance on how to apply the assessment criteria.

Section C Mark Scheme Criteria + Examples

Presented below are the November 2016 Mark Scheme criteria and in blue there’s
examples of paragraphs one could write in order to assess those criteria and additions
to the mark scheme made by the IB.
Mark Scheme Examiner note:
The main aim of paper 2 (SL or HL) section C is to assess candidates’ understanding of the six
major concepts (change, culture, ethics, globalization, innovation, strategy) within a business
context. Candidates are to demonstrate their understanding through an organization of their
choice. The expectation of the use of an organization is to allow assessment of the depth of
candidates’ understanding through their ability to apply the concepts and their knowledge.
Assessment of candidates’ knowledge of the organization itself is not an aim of the assessment. If
a candidate makes minor factual errors and these minor errors have no genuine bearing on
whether the candidate understands the concepts, examiners should not penalize. For example, a
minor error of historical fact (the year when a company was founded, for example, or the year in
which a change was implemented) which has no genuine bearing on candidates’ understanding of
the concepts does not warrant penalty.
Where the question ask for impacts of two concepts on content, examiners must allow for
unbalanced treatment of the two concepts throughout a candidate’s response. One concept
may be more significant than the other.
Warning: Do NOT use organizations from the case study/from section

A or B from the paper:
In section C, the question rubric explicitly states that “organizations featured in sections A and B
and in the paper 1 case study may not be used as a basis” to candidate’s answers to questions
6, 7 and 8. When this happens please award marks as follows:
Criterion A: award a maximum of [1]. The business management content cannot be relevant if
the organization is fictitious.
Criterion B: 0 marks – there is no connection to a “real-world organization”
Criterion C: award a maximum of [1]. The arguments cannot be relevant if the organization is
fictitious.
Criterion D: mark as normal.
Criterion E: award up to a maximum of [1]. The individual and/or group perspective(s) cannot
be relevant if the organization is fictitious.

Criterion A: Knowledge and conceptual understanding

This criterion addresses the extent to which the candidate demonstrates knowledge and
understanding of the given concepts and relevant business management content (theories,
techniques or tools, depending on the requirements of the question).
Marks Level descriptor
0 The work does not reach a standard described by the descriptors below.
1 Superficial knowledge of the given concepts is demonstrated. Business

management content is not selected or the content selected is irrelevant.
2 Satisfactory understanding of one or both of the given concepts is demonstrated. Some

business management content selected is relevant. The relevant content is satisfactorily
explained.
3 Good understanding of one or both of the given concepts is demonstrated.

The business management content selected is relevant, though it may not be
sufficient. The relevant content is generally well explained, though the explanation may lack
some depth or breadth.
4 Good understanding of both of the given concepts is demonstrated. The business

management content selected is relevant, sufficient and well explained.
Example. Paragraph 1: Meaning of globalization, issues of globalization, its impact

(both positive and negative ) on a given business.
Paragraph 2: What are the different strategies that can be adopted? Eg: using
ansoff matrix, external growth strategy , PESTLE, SWOT etc.

Criterion B: Application
This criterion addresses the extent to which the candidate is able to apply the given concepts
and the relevant business management content (theories, techniques or tools, depending on the
requirements of the question) to his or her chosen real-world organization(s). The real-world
organization(s) must not be the organization featured in the prescribed case study for paper 1.
1 The given concepts and/or any relevant business management content are
The given concepts and/or relevant business management content are connected
2
appropriately to the real-world organization(s), but this connection is not developed.
The given concepts and relevant business management content are generally well applied to
3 explain the situation and issues of the real-world organization(s), though the explanation
may lack some depth or breadth. Examples are provided.
The given concepts and relevant business management content are well applied to explain
4 the situation and issues of the real-world organization(s). Examples are appropriate and
illustrative.
Example. Paragraph 3: Apply the tools , techniques, theories, strategies mentioned in criterion A
to the chosen business (information collected from the research work done)
Mark Scheme addition:

● For [2] marks, “... connection is not developed” is treated the same is only superficially
developed.

Criterion C: Reasoned arguments

This criterion assesses the extent to which the candidate makes reasoned arguments. This
includes making relevant and balanced arguments by, for example, exploring different practices,
weighing up their strengths and weaknesses, comparing and contrasting them or considering
their implications, depending on the requirements of the question. It also includes justifying the
arguments by presenting reasonable evidence or other support for the claims made.
1 Statements are made but these are superficial.
2 Relevant arguments are made but these are mostly unjustified.
3 Relevant arguments are made and these are mostly justified.
4 Relevant, balanced arguments are made and these are well justified.
Example. Paragraph 4: Discuss/analyse with balanced argument. Link the business concepts,
tools with the chosen business, Analyse in terms of strength, weakness, compare, contrast and
present evidence to the argument.
Mark Scheme additions:

● Questions in Section C require consideration of the impact of one concept on a second concept –
therefore accept 2+2 arguments for a balanced response.
● Justification is through logic or data.
● For [2] marks there is no balance as there are no counter arguments at all, or the arguments are all
one-sided then this would be unjustified.
● For [3] marks there are some balanced arguments – some of which are justified.

Criterion D: Structure
This criterion assesses the extent to which the candidate organizes his or her ideas with
clarity, and presents a structured piece of writing comprised of:
● an introduction
● a body
● a conclusion
● fit-for-purpose paragraphs.
1 Two or fewer of the structural elements are present, and few ideas are clearly
organized.
2 Three of the structural elements are present, or most ideas are clearly organized.
3 Three or four of the structural elements are present, and most ideas are clearly organized.
4 All of the structural elements are present, and ideas are clearly organized.
Following should be kept in mind for presenting the answer:

● Introductions need to be concise and related to the question.
● The candidate’s response does not have to have explicit headings for each structural element.
● A body is the area in which the substance of arguments occur. It is usually located between the
introduction and the conclusion.
● Fit-for-purpose paragraph means that ideas are presented in a clear academic way. For example,
one idea per paragraph.
● The effect on stakeholders should be referred to throughout the essay, rather than fitting in a
paragraph at the end. The same applies to LR vs SR

Criterion E: Individuals and societies

This criterion assesses the extent to which the candidate is able to give balanced
consideration to the perspectives of a range of relevant stakeholders, including individuals
and groups internal and external to the organization.
1 One individual or group perspective is considered superficially or inappropriately.
2 One relevant individual or group perspective is considered appropriately, or two relevant

individual or group perspectives are considered superficially or
inappropriately.
3 At least two relevant individual or group perspectives are considered appropriately.
4 Balanced consideration is given to relevant individual and group perspectives.
Example. Paragraph 5: Evaluate from the perspective of various stakeholders affected by

the chosen business. Explain its relevance to them in a balanced way.

● One example of an “individual” could be an individual consumer or an individual manager.
However this cannot be considered with a “group” of consumers or a management team.
● For [4], a balanced response: look at the perspectives of both individual and group(s). The chosen
individual, group needs to be applicable and relevant to the question with specific explanation.
● Candidates need to go beyond stating the stakeholder.
● Candidates don’t need to explicitly say “stakeholder”.

A more general advice on how to structure a section c essay.
To score maximum marks, you must have:

● An introduction to the essay
● A main body with around 3 or 4 paragraphs
● A conclusion
● Fit for purpose paragraphs, clear ideas that allow flow of arguments
● INTRODUCTION
a. Concepts
b. Key terms
c. Organization
● PARAGRAPH 1
a. Main point
b. Relevant concept
c. Relevant content
d. Stakeholder
e. Supporting example/evidence
● PARAGRAPH 2
a. Main point
b. Relevant concept
c. Relevant content
d. Stakeholder
● PARAGRAPH 3
a. Main point
b. Relevant concept
c. Relevant content
d. Stakeholder
● CONCLUSION
a. Summary of main points
b. Final view
c. Answer the question

CUEGIS NOTES by Naomi Gajjar

C - change, U - culture, E - ethics, G - globalization, I - innovation, S - strategy
SOURCE:
https://docs.google.com/document/d/1XRt2n32BjI2i3i7ruQkkRQKjj61zgZ3EW7bJarH9NvQ/edit
Change:
Change is the speed in which companies makes or creates a difference for their benefits.
Sometimes a business may change due to demands of stakeholders, for survival, for the better
of the environment or even due to competition. Due to the continuous growth of the economy, if
business don't alter their products/services they may soon become outdated and that may lead
to bankruptcy.
Guiding questions:
- what have the business changed about their company due to conflicts with
stakeholders?
- the reason why the business made those changes; was it because of expansion, growth,
demand of stakeholders, or was due to competition?
Culture:
Culture is the way a business adjusts themselves due to their location, the individuals that live
there, the local community and their beliefs and respecting that. Culture helps shape the way a
business and their employees get do their things whilst maintaining respect for the culture.
Guiding questions:
- How is this translated in the workplace?
- How is the business' attitude and culture towards the culture?
- How can a company adjust themselves to satisfy the way a certain culture works?
- Is the way a business function different in other countries?
Ethics
Ethics is the way in which a business measures (to what extent) of what they view as to what is
right or wrong. Ethics are the moral principles that help and guide the business to making a final
decision. However, sometimes what is considered right or wrong may not be as clear as it
seems, especially when taking culture into consideration.
Guiding questions:
- Is it morally acceptable for a business to do this?
- What makes this immoral?
- What makes this moral?
- Was that decision made by a business considered moral?
- Was what the company did moral?
- Is the business being equal, in what ways does it make this equal?

Globalization
This is what a business aims for after securing a spot in the market, and after expansion. This
provides both risks/threats and opportunities for the business itself. Globalization allows the
business to benefit from the increase of customers and allows them to become more culturally
diverse. Multi-national companies will need to consider their location, mainly their production
facilities; most businesses would want their products to be produced in China because of their
low labour and land costs.
Guiding questions:
- Where should this company expand to next?
- Why is it important for this business to expand their operations globally?
- What are the benefits and consequences to a business expanding globally?
- What makes expanding globally to one country more beneficial than expanding to
another?
Innovation
Innovation in the world of business empowers the business itself, which in the long run allows
this company to have an advantage against competitors. This also allows a business to stay
competitive as they are renewing themselves in the competition.
Guiding questions:
- What makes it important for a company to innovate a new product or service?
- Why is it important for this business to out innovate their competition?
- How long did this business take for them to innovate a product/service?
- How can a company innovate a new product?
Strategy
How a business make plans to reach their long - term goals. There are three things a business
needs to do when creating a strategic plan: decide the position the business is in currently, find
out what their goals are, find out and work towards what a business needs to do in order for
them to achieve their targeted goal.
Guiding questions:
- Where is the business right now?
- Where does the business want to be?
- What does the business need to do for them to reach their goal?
- What are their goals?
- What is the problem?
- Is this a long term or a short term goal?
- Is the goal a reasonable and achievable?

Possible Questions:
1. With reference to one or two organisations that you have studied, discuss how marketing
strategies may differ in two cultures you are familiar with.
2. With reference to one or two organisations that you have studied, discuss how financing
strategies may differ in two cultures you are familiar with.
3. Evaluate how culture affects strategic decisions in a company of your choice.
4. With reference to one organisation you have studied examine how globalization and
innovation impacts company marketing
5. With reference to one organisation that you have studied, compare and contrast the
importance of ethics and of innovation in company growth strategies.
importance of ethics and of innovation in product development.
7. With reference to one organisation you have studied, examine what changes
globalization brings about in the management of human resources.
8. With reference to an organisation you have studied, examine how ethics influences
decision-making with budgeting.
9. "With reference to one organization that you have studied, examine what changes
globalization brings about in the management of human resources".
10. With reference to one or two organisations that you have studied evaluate different
strategies a business can adopt to respond to issues of globalization
11. With reference to one organisation that you have studied discuss the importance of
globalization and innovation on quality management.
12. With reference to an organisation of your choice discuss the impact of innovation on
operations management strategy. (June 2016)
13. With reference to an organisation of your choice, examine the impact of culture on
organisational ethics. (June 2016)
14. With reference to an organisation of your choice, examine the impact of globalization on
organisational change. (June 2016)
15. With reference to one or two organization(s) that you have studied, discuss how
marketing strategies may differ in two cultures that you are familiar with.

16. With reference to one organization that you have studied, examine what changes
globalization brings about in the management of human resources.
17. With reference to one organization you have studied, compare and contrast the
importance of innovation and ethics for Research and Development (R&D).
18. With reference to one or two organizations that you have studied, evaluate different
strategies businesses can adopt to respond to issues of globalization.
19. With reference to one organization that you have studied, discuss the importance of
innovation and of ethics in marketing.
20. Evaluate how culture affects strategic decisions in a company of your choice. [20
marks]
21. With reference to one or two organization(s) that you have studied, discuss how
financing strategies may differ in two cultures that you are familiar with. [20 marks]
22. With reference to one organization that you have studied, examine how globalization
and innovation impacts company marketing. [20 marks]
23. With reference to one organization that you have studied, compare and contrast the
importance of ethics and of innovation in company growth strategies. [20 marks]
24. With reference to one organisation that you have studied, discuss the importance of
globalisation and of innovation on quality management. [20 marks]
25. With reference to one organisation that you have studied, examine what changes
globalisation brings about in the management of human resources. [20 marks]
importance of strategy and of change in production methods/product development. [20
marks]
27. With reference to one organization you have studied, compare and contrast the
importance of innovation and ethics for Research and Development (R&D). (Source) [20
marks]

HOW TO STRUCTURE A CUEGIS ANSWER :
Introduction (briefly 1 paragraph)
● Definition of the CUEGIS Concept

● Definition of the strategy (if stated; e.g. Marketing)
● Introduction to the organisation
Body (3 paragraphs)
● #1 Point that supports your CUEGIS Concept
●
● Advantages (around 2)
● Disadvantages (around 2)


Conclusion (1~2 paragraphs)

● Short Term Implications
● Long Term Implications
● Stakeholder Conflict
● Stakeholder Impact
● The cost Implications
If possible, write changes to this here, which has a bit more info added:
https://docs.google.com/document/d/1QRgXL-0fwFT0Ez4OWRkXFtDovjodk3u-IAEsPCme
l3c/edit

COMPANY :McDonalds
Change
McDonald's regularly changes its strategy to keep up with the market demand and also to
remain competitive in this large market. Over the last year, it has made many changes, for
example, making major changes to its menu. Adding and removing various dishes all around
the world. They also plan to add more dishes for breakfast and begin serving ‘healthy’ breakfast,
every day of the month!
Culture
McDonald's has changed there company a lot according to the culture here in India. Before they
decided to enter the market in India, they had decided to omit beef and pork from the menu to
aid in preventing the Indian citizens from being offended. research shows that in 2003, of 100
meals that people ate in a month, only three were eaten out. They introduced a 20 rupees (20p)
burger called Aloo Tikki Burger, a burger with a cutlet made of mashed potatoes, peas and
flavoured with Indian spices. "It's something you would find on Indian streets; it was essentially
the McDonald's version of street food. The price and the taste together, the value we
introduced, was a hit. It revolutionised the industry in India," he says. Now eating out has gone
up to 9-10 times per 100 meals and McDonald's in India has more than 320 million customers a
year. The entire menu has been customised after extensive market research. Now over 70% of
the menu has been changed to vegetarian to cater to customers. Even competitors such as
burger king and subway have followed by dropping beef and pork. They have greatly changed
the way they plan, make decisions and implement strategies because of the country they are
entering.
Ethics
In ethics, CSR comes into play, which every business must do as part of its social responsibility.
In India specifically, to remain ethical, McDonald's has begun investing in a eye care hospital, to
create an image that is socially responsible, thus making it stand out from its competitors.
However there are ethical issues with McDonald's as well. People have been fighting for their
working rights due to cases such as wage theft, poor management and bad working conditions.
Ethical issues with the food also comes in. There have been cases where McDonald's have
given the cows steroids to make more beef. All of these worsen the image of McDonalds.
Globalisation
McDonald's is a prime example of globalisation. Originating in USA, and slowly expanding into
markets and regions where the concept of fast food was not yet discovered. It targeted the
middle class segment since it saw a niche, and kept the same interior design, service, and
quality of food throughout the world, generating its amazing brand image. These things allowed
seamless globalisation to take place! Making it one of the largest MNC running today.
Innovation
Innovation is key to remaining competitive. Nearly all the dishes in the menu of McDonalds have
been innovated and designed completely by them! Many trends have begun just by McDonald's.
These trends aid in creating the brand image of McDonalds, which highly compliment the sales.
Strategy

The company deals with 3 strategic issues.

1. How to deal with the growing competition
2. How to deal with financial issues such as high franchisee fees in contrast with
geographical expansion goals
3. How to deal with the worldwide economic crisis
They deal with competition by using aggressive marketing strategies. You will never go a day
without noticing a sign that leads you to McDonalds or viewing an ad about it.
Financial issues are dealt with the spreading of risk through globalisation. There are so many
franchises that if one goes into loss, there are hundreds of others ready to cover up the loss and
make a remarkable profit.
The worldwide economic crisis is something that affects every business, therefore it is not much
of a problem for McDonald's as it is already established. It can actually prove to be
advantageous as competition is killed off and it is very difficult for new competition to arise. As
this affects every business, even the competitors deal with the same struggle, evening out the
‘battlefield’

COMPANY : Starbucks
Change
Due to the continuous changing external and internal factors, change should be managed within
businesses if they are to move forward and remain competitive. These factors come from
various backgrounds. Those include the population change, culture change, objectives, change
and etc. The importance of these factors determines whether the change should take place or
not. Sometimes, changes are made, However, not all changes favour the businesses, but also
give negative impacts on the business as the changes made do not always guarantee for the
business profit. Hence, the businesses should be aware of the surrounding changes in the
external environment and need to adapt to the new situation quickly not to be left behind in the
business world.
In addition, the changes made in Starbucks have affected the whole business objectives. Since
it was founded, the business has strong ethical objectives. Starbucks used to only purchased
the best quality coffee beans from Latin America, Africa and Asia and it included forest
conservation programs and loaning to farmers which have benefited to the local communities as
well as to the business image and to the world climate. Moreover, Starbucks values the
employee as much as customers and given the rank as the business partners where Starbucks
being as a good CSR business. Since then, the simple mission has never changed and only the
additions to the missions are made. Starbucks focus on making the emotional connections to
the coffee and the atmosphere where the consumer can enjoy a moment without pressure. As
the changes in the external environment were really fast, Starbucks has to cope with the
changes by using different methods. The population increased and the business has to expand
to different parts of the globe, so that Starbucks got more customers as well as strong
competitors across the world. Before expanding, Starbucks had to take cautions in entering the
different cultures based market by adapting to the local business styles and regulations. So
some parts of the main business departments’ objectives have to change to suit with
competitive business world. For example, Starbucks has opened numerous social foundations
and youth centers to get the good business image from the local residents and pressure groups.
It includes the Starbucks foundation and various farming communities. Although the compliance
costs on these social responsibilities are fairly high, the impact on main stakeholders such as
owners and employees were not big enough for them as in return they enjoy high profile in
business standing compared to their rivals.
Culture
Although Starbucks is a franchise and has to follow a core menu set by the franchiser, it also
has to adjust its products to the country it is located in and its culture. The products it sells has
to appeal to the market and their local culture. Since there are many people living in Malaysia
who are Muslims, in order for Starbucks to maximise sales it would have to convert into selling
Halal products to allow them to attract a wider target audience. By selling Halal products,
Starbucks may be one of the few large franchise chains that provide Halal products, allowing
them to stand out from competitors. This may increase customer loyalty and sales as
consumers repeat their purchases from Starbucks.
The price of Starbucks products would also be influenced by the cultures in the differing
countries. Germany is considered a MEDC that is developed and relatively economically stable,
compared to parts of Malaysia which may still be seen as developing. Due to Germany's

consistent high quality of life, many people drink coffee and dine at cafes as it has become a
lifestyle and social norm. Coffee is seen as a staple in Western culture, and the majority of
people in Germany grab a coffee on the way to work. This allows Starbucks to set the prices of
its products relatively high as there is a high demand for coffee products. Malaysia on the other
hand, has many competing local drinks such as Bubble Tea or Teh Tarik therefore there is a
lesser demand for coffee drinks as it is also more commonly seen in Western cultures.
Starbucks would be able to break even if they used competitive pricing and priced products at
slightly lower than competitors to increase sales. However, Malaysia is becoming more modern
and also attracts tourists therefore Starbucks may still survive if their products match
competitor's prices, especially since Starbucks is a well-known and established brand.
Ethics
Starbucks uses cocoa beans obtained only from workers who are paid at least the minimum
wage and are not children. They promote this on all of their products to maintain a socially
responsible brand image.
https://www.starbucks.com/responsibility/sourcing/coffee
Globalisation
Starbucks targeted the niche in the market which allowed it to easily globalise and spread its
risks. There are downsides with globalisation as well, such as different economic situations in
different countries, making decision tougher.
Innovation
Innovation is an organization's process for introducing new ideas, workflows, methodologies,
services or products due to the sophisticated market demand. It includes researching on
possible beneficial product and developing the modern, reasonable, efficient products to gain
the competitive advantage over the businesses rivals, contributing the key element in providing
aggressive top-line growth. For example, innovation has created new leading industry such as
Smartphones. However, sometimes it can turn the business into the great loss. The causes of
loss can be from internal or external. From internal, the factors may range from poor time
management to poor creativities of the developers. For external, the factors may range from
government policies to cultural background depending on the location. So, innovation is the
important strategy for the business success.From Starbucks, we can see that Starbucks has
done innovations on coffee making and unique services. Starbucks has developed the new
different coffee products for different types of consumers. In 2012, Starbucks has introduced us
the new type of coffee which is the first deliver thirst-quenching refreshment from real fruit juice
and a boost of natural energy from a new source, green coffee extract. The introduction of this
product is an evolution of the coffee market using a new breakthrough coffee experience using
green coffee extract, resulting in delicious, low calorie refreshment with a boost of natural
energy from caffeine and fruit juice. It has given the Starbucks the opportunities for the global
coffee market as it attracted the world coffee consumers and has affected the coffee related
businesses as well as rivals. Through this innovation, Starbucks has gain competitive
advantage in market and has improved in market standing. Hence, some tactical objectives of
Starbucks has changed due to the expansion in the services and function in the business
Strategy

Starbucks has a history of effective marketing strategies. Since McDonald's, Dunkin Donuts and
Costa entered the coffee industry, there has been an increased competition between them.
Starbucks has found more success advertising on a local level rather than to the nation as a
whole. The Company advertises a lot through print mediums, as Starbucks’ target market tends
to be educated people who do more reading than the average person

COMPANY : Apple
Change
Practically since its inception back on April 1, 1976, Apple has repeatedly captured the world's
attention thanks in large part to its rebellious underdog attitude and continuous efforts to reset
expectations of what's possible from consumer electronics.ENTERING FASHION MARKET
Apple announced purchase of Beats Electronics at May 2014, one month before its annual
WWDC (WorldWide Developer Conference) with $3 billion. Although Apple has plenty of
previous records on buying smaller companies or startups, this is the rst time Apple has spent
huge amounts of its cash deposit to buy such business. Beats Electronics is mainly known for
its electronic music accessories, such as earphones and speakers. It is well-known that Beats’
productions have higher fashion value than actual technical value. Previously as a
technical-oriented company, Apple’s move of purchasing Beats can be seen as one of the rst
steps of an attempt to enter the fashion market.
Apple also hired Angela Ahrendts, Burberry’s previous CEO who led the company through a
period of outstanding global growth, as president of retail and online stores to better market
Apple products to fashion-oriented customers.
Apple’s purchase of Beats electronics also coincides with its later announcement of marketing
its watch product line not only as digital gadgets, but also as fashion accessories. The addition
of Apple Watch Edition, which presumably costs more than $1500 since it’s made of premium
materials such as 24-karat gold. Apple Watch also made its appearance on multiple fashion
magazines, such as VOGUE China. This sends the signal to public loud and clear - Apple is not
only producing electronic gadgets any more. It has a much wider ambition of entering the
fashion world.
Culture
They want every person who joins their team, every customer visiting their stores or calling for
support to feel welcome. They believe in equality for everyone, regardless of race, age, gender,
gender identity, ethnicity, religion, or sexual orientation. That applies throughout their company,
around the world with no exceptions. They want every person who joins their team, every
customer visiting their stores or calling for support to feel welcome. They believe in equality for
everyone, regardless of race, age, gender, gender identity, ethnicity, religion, or sexual
orientation. That applies throughout their company, around the world with no exceptions.
Inside Apple, employees are often devised into small teams, consisting of a relatively small
amount of manpower. This has been embedded in Apple’s DNA since decades ago. As an
example, Apple’s hardware designing team, designing all aesthetics and architectural aspects of
all Apple’s hardware products, only consists of 15 employees.
While It can be argued that breaking a business as huge as Apple into smaller “start -ups” can
enable better concentration, it also makes collaboration and communication arguably more
difcult between different departments.
As an example, Apple’s peer-to-peer le wireless transfer service under its mobile operating
system and desktop operating system shares the same marketing name, AirDrop, but they used
to work extremely differently (one based solely on peer-to-peer WiFi and the other one basing
on Bluetooth Low Energy and WiFi direct). A a result, they were incompatible with each other for

over 14 months, causing confusion among users. One of Apple’s telephone support operators
shared his experience, “I have got no less than a thousand calls over this confusion and it is
really difcult for me to explain reason behind their incompatibility.” !
Unlike other companies that encourages, or at least does not discourage public interaction
between development teams and users (or 3rd party developers), Apple builds a strong, brick
wall to prevent such communication. This is embedded in Apple’s culture, dating way back to
the 1990s. This approach has been widely criticised, especially among 3rd party developers.
As an example, while Apple’s software get more and more complicated, this hostile approach
when dealing with developers has led to a gradual decline in Apple’s software quality. For
example, its bug reporting system, internally codenamed “radar” is designed to be opaque and
unfriendly. It still features an user interface that is inconsistent with the rest of Apple’s other
software
Bug reports and feature requests lled by developers with their own precious time falls into a
gigantic black hole. Apple usually does not respond to such reports at all. In fact, developers’
reports are either left open or marked as duplicate. When marked as duplicate, developers lose
track of their report and cannot follow-up any more. Developers can also not search, or vote on
reports sent by other developers..
From the outside, It seems like Apple cares little about such reports. However, from the inside,
these are simply the result of Apple’s extremely small developer relations team, consisting less
than 20 employees, while other leading technological companies has hundreds of employees
dedicated to such matters.
Although as a cooperation, Apple has a culture of being mysterious and unreachable, most
employees within Apple corporations have completely different personalities. They are just like
every other human being on planet earth, where they are friendly, helpful and enthusiastic. And
they are extremely glad to help users and developers to solve their issues. However only based
on one prerequisite - if you can reach them. And usually, you can’t. Unless you are their friend
or family, of course.
Ethics
Around the globe, Apple employees are united in bringing equality, human rights, and respect
for the environment to the deepest layers of our supply chain. They demand that suppliers treat
workers fairly and ethically at all times.
After environmental-oriented pressure groups continuously criticise Apple’s use of un
-renewable energy in its iCloud Data Center, Apple realised its mistake and invested more than
$1 billion to deploy environmentally-friendly power systems in its data centers, such as solar
panels and wind-turbines. However current technologies limit the durability of such systems.
According to analysts, these systems will stop functioning long before the costs and benets
break-even.
Apple also saw its own continuous effort in becoming more environmentally friendly as an
competitive advantage, launching campaigns, such as “We want to leave the world better than
we found it”. Apple also took the chance to poke fun at competitions who rip off their products’
designs, featuring advertisements about their innovation on being environmentally responsible
on newspapers with slogans “Here’s some ideas for everyone to copy”.

Apple also depreciated the use of harmful chemicals from their products by designing their
products with cleaner, greener materials, such as replacing PVC with “non chlorinated and non
brominated thermoplastic elastomers” in power cords and headphone cables, using LEDs
instead of fluorescent lamps to backlight Apple’s computer lineup. Apple also internally tests for
toxins with “X-ray fluorescence spectroscopy and ion chromatography”. As a result, Apple
markets their products are “better for the environment”, “better for people who use them” and
“better for people who make them”.
According to demographic data, more than 50% of all employees at Apple HQ are white people
and 70% of all employees are male. Both of these data are slightly higher than industrial
average, but still lacks diversity.
After Apple’s suppliers being exposed for multiple times on newspapers and TV stations for
labour abuse, use of child labor, excessive working hours and poor working condition, Apple
responded and started investigations to deploy more regular 4
inspections, provide training courses for suppliers’ employees to bring more ethical employment
approaches than previous years.
However, the ignorance of human rights is not only present at Apple’s suppliers, but also within
Apple Cooperate (although to an arguably lesser degree). Employees often receive emails
during mid-night and are expected to reply within an extremely short amount of time. This
mentally condensed and physically intensive workflow seems “rewarding but extremely
challenging” from Apple’s perspective, but employees do express their rising concerns about
human rights.
Under the new leader, Tim Cook, Apple is seemingly to care more about human rights, as
seen from them sponsoring Human Rights Campaign, the largest LGBT rights organisation in
United States. Tim even went to extreme lengths, such as shutting off anti-environmental
investors during an investor call with “we do a lot of things for reasons besides prot motive,"
and recommending that anyone who had a problem with that “should get out of the stock.”
Despite US government agencies constantly reaching out technological businesses and
pressuring them to add “back doors” to their software or service, Apple pays an continuous
effort to refuse cooperation with such agencies. Certain judges in federal agents even went to
extreme lengths to pressure Apple, such as claiming “A child will die due to lesystem
encryption” after Apple added automated, hardware accelerated full-lesystem encryption and
no longer stores encryption keys, so that even if law enforcement presents a physical iOS
device to Apple and ask Apple to extract data, Apple is unable to decrypt any data from it as
long as the device has a password lock.
Unlike alternatives, Apple’s digital wallet system, Apple Pay, does not store credit card number
or security codes on devices or Apple’s servers. Instead, Apple uses various technologies, such
as generating nonce-based tokens specically for every transaction where only bank receives
detailed information while Apple itself only receives approximate time and location for
diagnostics usage. Other Apple services, namely FaceTime and iMessage are also built on the
foundation of similar technologies to ensure secrecy and privacy.
Independent security researchers have mostly veried such claims through techniques such as
extracting Apple’s software installation package, then decompiling executable binaries to
examine them.

Globalisation
First of July 2013, Apple has developed 417 retail stores in 13 countries and an online store
available in 38 countries with global sales of $16billion dollars in merchandise in 2011. As a
multi-national corporation, Apple Inc has realized the significance of globalization by spreading
all over the world.
Innovation
Apple has always been different as they have had a different perspective of the world, they
aspire to do more things and to have the opportunity to create the best products in earth,
products that change lives and help shape the future.
What is Apple’s fundamental soul? The company’s motto, “Think Different,” provides a hint.
Apple maintain an introspective, self-contained operating style that is capable of confounding
competitors and shaking up entire industries
Strategy
- Apple Brand Personality -Customer Experience
-Apple Brand Architecture
-Apple Halo Effect
-Corporate Market
-Apple Watch
-Original Mac Marketing Strategy
COMPANY : GOOGLE

Change Positive:
● Google's mission statement remains “to organize the world's information and make it
universally accessible and useful.” (Source). It’s vision statement is “Google’s vision
statement is “to provide access to the world’s information in one click.” (Source). This
kind of clear focus should help it adapt to changing circumstances
Change Negative:
● On October 2, 2015 Google restructured itself rather dramatically. Google is now a
division of a parent company, a conglomerate called Alphabet Inc. Alphabet's portfolio
encompasses several industries, including technology, life sciences, investment capital,
and research (Source). This could suggest a lack of focus for the company. It is possible
that (with the Alphabet change) Google is losing some focus on it’s Mission and is
instead aiming to do a wide variety of things which don’t all relate to the Mission.
Figure: Alphabet’s Current Structure (Mumbrella)
Culture Positive:
● The two founders, Larry Page and Sergey Brin together still control 56 percent of the
stockholder voting power (Source), even though they only own 14% of the shares. In this
way they are able to continue to influence the company and its corporate culture.
● Google has a Chief Culture Officer (who is also the serves Director of Human
Resources) (Source) to maintain the culture the company was founded on.
● Google aims to maintain a flat organizational structure and collaborative working
environment.
● Google’s headquarters (called the Googleplex) is designed to be light, stimulating and
playful (Source).
● Google’s stated philosophy is that "work should be challenging and the challenge should
be fun.” (Source)

● The founders Sergey Brin and Larry Page, as well as the CEO Eric Schmidt only receive
a salary of $1 per year (Source) --which is meant to show that they want their own
wealth to be increased only when the company stock increases in value. Obviously, all
three of them own a lot of company stock.
● Google uses a policy often called Innovation Time Off, where Google engineers are
encouraged to spend 20% of their work time on projects that interest them. This is highly
motivational and also had lead to a lot of Google’s new services (Gmail, Google News
and Adsense). (Source: Youtube Video of Marissa Mayer).
● They provide free food all day long, every day and they encourage their employees to
eat nutritiously (Source).2
Culture Negative:
● Some people feared Google’s IPO would change their company culture. (Source)
● There is some evidence that Google has lost its anti-corporate, no evil philosophy. This
links to Ethics of course, but also it relates to the values of the company, which affects its
culture.
● Google seems strongly influenced by the national culture of this headquarter country, the
United States. This could cause difficulties as they seek to globalize.
Ethics Positive:
● Its mission statement from the outset was "to organize the world's information. This
could be viewed as an ethical ambition for the company and not something necessarily
driven by a profit motive.
● Google’s unofficial slogan is "Don't be evil". They are said to genuinely ask themselves
whether business strategies and tactics are evil or not.
● Google is part of the Alliance for Affordable Internet (A4AI), which seeks to make
Internet access more affordable so that access is broadened in the developing world,
where only 31% of people are online (Source).
● In 2004, Google formed a not-for-profit philanthropic organization called Google.org and
provided it with $1 billion. The mission of the organization is to create awareness about
climate change, global public health, and global poverty (Source).
● In 2010, Google shut down its China search engine. It wanted to stop censoring its
search results in China and therefore had to route web queries through its uncensored
Hong Kong site Google.com.hk (Source). This meant for the company that they would
not be fully welcome in mainland China anymore --which was a controversial move
because China was a major growth market.
Ethics Negative:
○ Google uses various tax avoidance strategies. Out of the five largest American
technology companies, it pays the lowest taxes to the countries of origin of its

revenues. The company accomplishes this partly by licensing technology through

subsidiaries in Ireland, Bermuda, the Bahamas, and the Netherlands (Source).
○ Google has also been criticised for issues related to search neutrality. Some
argue they shouldn’t feature their own websites so prominently in search results,
for example.
○ In 2003, The New York Times complained about Google's indexing, claiming that
Google's caching of content on its site infringed its copyright for the content
(Source). The court ruled in favor of Google.
○ They have also has criticisms related to censorship, and privacy (Source). They
used algorithms which read users’ emails in order to provide relevant
advertisements (Source).
○ In 2008, Google faced accusations in Harper's Magazine of being an "energy
glutton" (Source). Their servers use up enough energy to power hundreds of
thousands of homes and this has climate affects.
○ Another video on Google’s ethics:
Globalisation Positive:
● As of September 2013, Google operated 70 offices in more than 40 countries (Source).

Google as a presence, officially or unofficially, in every country in the world.
● As of 2014, Google Inc. owned and operated six “Google Modular Data Centers” across
the U.S., one in Chile, one in Finland, one in Ireland, one in Belgium, one in Singapore
and one on Taiwan (Source). In 2011, the company had announced plans to build three
data centers at a cost of more than $200 million in Asia and said they would be
operational within two years (Source).
Globalisation Negative:
● As of November 2013, Google had less than 4% market share in search in China
(Search Engine Land). This is evidence of them having some difficulties as they expand
globally. However, they have had an easier time in most other countries.
● In April 2015, the European Union filed antitrust charges against Google, claiming the
company was tailoring search results to favor its comparison-shopping service (Wall
Street Journal). This is another example of the legal challenges of operating as a
multinational company.

Innovation Positive:
● Google has founded in 1996 when Larry Page and Sergey Brin were PhD students at
Stanford. They invented a better system that would determine a website's quality (or
search relevance) by the pages that linked to that page. The more links, to that page, the
more authoritative it was. Also links from more authoritative pages were valued more
than other links. They called their new, innovative approach PageRank (Google Tech
Overview).
● Google now has a great number of product and process innovations (and patents for
many of these). For example, Google Translate can translate between 80 different
languages. The software "learns" from professionally translated documents, specifically,
for example European Parliament proceedings (NYTimes).
● Google uses special, temporary alternate logos to place on their homepage intended to
celebrate holidays, events, achievements and people. This is an innovative approach to
branding because previously companies were always very careful about showing their
logo consistently.
● Google mostly uses text-only ads, which (surprisingly) was considered innovative.
Consumers really appreciated the lack of distracting images on search pages and many
chose to use Google partly for this reason.
Innovation Negative:
● In 2011, Google paid $900 million for six thousand Nortel Networks patents (Globe and
Mail) and then acquired Motorola Mobility for $12.5 billion (Washington Post). Both of
these moves were intended to strengthen Google's patent portfolio. This is considered a
defensive move by Google. Rather than creating new innovation, they are investing in
acquiring patents to protect themselves from being sued for the technology they sell.
This can be seen the opposite of innovation.
Strategy Positive:

● It is not easy to know exactly what Google’s overall strategy is. But this video does a
good job of speculating on how it seems to work:
Strategy Negative:
● Most of Google’s advertising revenue comes from selling keyword advertising. However
they weren’t the first to use this approach. A company called Goto.com was. Google has
been over allegations that they infringed Goto’s (pay-per-click and bidding) patents. The
case was then settled out of court; Google agreed to issue shares of common stock to
Yahoo! (the company who came to own the Goto patents) in exchange for a perpetual
license to use these processes in the future (CNET). This revenue-generating approach
has therefore worked out for Google, but the patent issues put a billion-dollar
revenue-generating strategy at risk.
● It could be argued that Google’s decision to stop censoring it’s search results in China
was a strategic decision, which had negative consequences --they lost access to the
Chinese market.
● Google’s rapid growth since they incorporated has involved a huge number of
acquisitions and partnerships beyond Google's core search engine (Here is a list on
Wikipedia). Arguably, this is related to a lack of a clear strategic direction for the
company. They are doing more and more things, but these do not seem to be all related
to the company’s mission, for example.
● Most of its profits are derived from AdWords, their advertising service.
● On January 29, 2014, Google announced it was selling its Motorola Mobility unit to
China-based Lenovo, for $2.91bn. The company kept the extensive patent collection
used to develop Android products, considered the most valuable part of the original deal
(Washington Post). The sale price was significantly less than the $12.5 billion Google
had bought Motorola Mobility for. The $2.91bn price tag consisted of $660 million in
cash, $750 million in Lenovo ordinary shares, and a $1.5 billion 3-year promissory note
(Fortworth News).

COMPANY : TOMS
Change Positive:
● “Consumers more and more are looking to buy from socially responsible companies, and
they’re actually willing to pay more for products in certain cases”(Forbes.com 2011).
● The founder, Blake Mycoskie said recently, "I've learned that the keys to poverty
alleviation are education and jobs. ...the motivator now is, How can we have more
impact? At the end of the day, if we can create jobs and do one-for-one, that's the holy
grail" (Fast Company). So the company is open
Change Negative:
● The company seems reticent to drastically change its business model (the one-for-one)
approach, despite indications that it might not be doing the good for society that the
company aims for.
Culture Positive:
● When Tom’s founder Mycoskie sold half of the ownership of the company, he retained
his role as Chief Shoe Giver and ensured the one-for-one policy would continue.
● Mycoskie said he would use half of the proceeds from the sale to start a new fund to
support socially minded entrepreneurship, and the new will match his investment and
continue the company’s one-for-one policy (New York Times).

● ast Company)
Their founder’s mantra is, “Start Something That Matters.” (F
Culture Negative:
● It will be difficult for Tom's to maintain it's company culture now that it has been sold to
Bain Capital, a private equity giant. Bain capital is in the business of acquiring small
companies, changing them dramatically to increase their profitability.
Ethics Positive:
● In Spring 2013 Toms gave away its 10 millionth pair of shoes and expected to give away
10 million more within the following 18 to 24 months. (Fast Company). And now, by
December 2015, they have given away 35 million pairs. (Toms.com)
● The company has announced its plans to have one-third of all its shoes produced in
countries receiving aid by 2015 (Toms.com)
Ethics Negative:
● They are focused on distributing shoes in areas where the health and social benefits of
the shoes would be the highest
● The canvas shoes have been given to children in 40 countries worldwide, including the
United States, Argentina, Ethiopia, Rwanda, Swaziland, Guatemala, Haiti, South Africa
(Toms.com)
● Despite their mission to donate shoes to children in need, TOMS has been criticized for
being vague about measures it's taken to uphold fair labor standards in China, Ethiopia
and Argentina, where it makes the majority of its products (Huffington Post)

● Aid agencies criticize Tom’s saying that the strategy just makes people feel good rather
than addressing the underlying causes of poverty. And garment-industry giveaways like
this can actually destroy jobs in the local economy: Here’s a Youtube Video that talks
about that in more depth:
● Criticisms have also included whether or not the shoe donation is as effective as a
monetary one to other charities (Foreign Policy).
● It’s often mistaken for a charity, meaning that some might buy the shoes thinking that
they are supporting a charity rather than providing a company with profits (Fast
Company)
● Most of the data the company has gathered, regarding the positive effect of it’s
one-for-one strategy, so far is anecdotal. (Fast Company). Serious academic studies
may not support the company’s claims to be having an overall positive effect on the
societies it donates to.
Globalization positive:
● The company has announced its plans to have one-third of all its shoes produced in
countries receiving aid by 2015 (Toms.com)
● Toms president Laurent Potdevin said, "Toms would not be what it is today without
China. We wouldn't have the resources we have now. It has been the easiest, most
cost-effective place to make shoes" Fast Company) .
Globalization Negative:
● The company faces competition from competitors producing in low-cost countries. If

Tom’s is aiming to produce in the countries where they are donating their shoes and

other items, they may find that these are not the same countries where it is cheapest to
produce.
Innovation Positive:
● The business model is innovative. They seem to be the first to come up with this
one-for-one approach. And this model has inspired many different companies to adopt
similar concepts.
● They are also the first major company to present themselves as a real social-business
--profit oriented, but also with social-giving as a crucial part of their business strategy.
This approach has been used previously in charities, but not as successfully in the
for-profit sector.
Innovation Negative:
● The company has been credited for a new style of shoe. However, the main shoe model
is based on an Argentinian shoe called an “alpargatas” actually not innovative. The
shoes have been worn by Argentine farmers for hundreds of years and were the
inspiration for the classic style of Toms shoes (Huffington Post).
Strategy positive:
● When Toms sells a pair of shoes, a new pair of shoes is given to an impoverished child.
(Smith, Seana. "TOMS CEO Expanding Reach of 'Buy One Give One' Model". Fox
Business. )
● phrase used to try to describe the unique business model has been "caring capitalism"
(Summer Horn).

● They have expanded to included the “buy one give one” model to include:
○ coffee (provides water), With each purchase of TOMS Roasting Co. coffee, the
company works with other organizations that they refer to as “giving partners” to
provide 140 liters of safe water (a one-week supply) to a person in need.
○ TOMS Bag Collection was launched to help address the need for advancements
in maternal health. Purchases of TOMS Bags help provide training for skilled
birth attendants and distribute birth kits containing items that help a woman safely
deliver her baby (Toms.com).
○ eyewear, part of the profit is used to save or restore the eyesight for people in
developing countries.
● Toms trademarked the phrase "One for One" to describe its own business model (Good
Works)
● ast Company).
The company aims to be considered fashionable as well as ethical (F
Strategy negative:
● On August 20, 2014 it was announced that Bain Capital had acquired 50% of Toms for
$625 million. (Reuters). This could have challenge the existing strategies employed by
Tom’s. The Tom’s strategies will have to adhere, at least somewhat, to the interests of
their new owners.
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Business Management CUEGIS

- Crowdsourced by IB Business Management Students -

C​hange, C​u​lture, ​E​thics, ​G​lobalization, ​I​nnovation & ​S​trategy

Please share your study materials/notes/documents/advice/questions on this resource

Post-Exam Discussions were available since 13:00 (UTC) on 02-05-2017

Original Reddit thread: ​https://redd.it/669uiv

General advice on how to answer the CUEGIS question: 6

Section C Paper 2 Sample Questions: 8

Sample given to teachers 9

Section C Assessment Details 12

Section C Mark Scheme Criteria + Examples 13

A more general advice on how to structure a section c essay. 19

CUEGIS NOTES by Naomi Gajjar 20

Crowdsourced by IB Business Management Students for May 2017 Examination

Useful CUEGIS Websites

Mr. Brackens CUEGIS Notes:

CUEGIS Question Bank:

Examples from previous exams:

Youtube videos worth watching

General Business Management Links:

Business Management Case Study 2017 Resources (Utopia):

Crowdsourced by IB Business Management Students for May 2017 Examination

Change: ​The adaptation of business objectives, strategies and operations to accommodate

Crowdsourced by IB Business Management Students for May 2017 Examination

Budgeting and the CUEGIS concepts

● Innovation - to what extent does budgeting constrain innovation?

Crowdsourced by IB Business Management Students for May 2017 Examination

General advice on how to answer the CUEGIS question:

Introduction:​ 1. Define Globalization 2. Define Change 3. Introduce Starbucks: international

Crowdsourced by IB Business Management Students for May 2017 Examination

Examiner tip (OSC Study guide)

Crowdsourced by IB Business Management Students for May 2017 Examination

Section C Paper 2 Sample Questions:

- With reference to an organization of your choice, discuss the importance of ​innovation

- With reference to an organization of your choice, examine the effects of ​globalization

- With reference to an organization of your choice, examine how promotion in the

- With reference to an organization of your choice, discuss the importance of ​innovation

- With reference to an organization of your choice, examine the impact of ​globalization

- With reference to an organization of your choice, discuss the influence of ​ethical

Crowdsourced by IB Business Management Students for May 2017 Examination

Sample given to teachers

Kettlinger Furniture Company (KFC) of Savannah, Georgia in an interesting example of how

Crowdsourced by IB Business Management Students for May 2017 Examination

Crowdsourced by IB Business Management Students for May 2017 Examination

Crowdsourced by IB Business Management Students for May 2017 Examination

Section C Assessment Details

Crowdsourced by IB Business Management Students for May 2017 Examination

Section C Mark Scheme Criteria + Examples

Warning: Do ​NOT​ use organizations from the case study/from section

Crowdsourced by IB Business Management Students for May 2017 Examination

Criterion A: Knowledge and conceptual understanding

1 Superficial knowledge of the given concepts is demonstrated. Business

2 Satisfactory understanding of one or both of the given concepts is demonstrated. Some

3 Good understanding of one or both of the given concepts is demonstrated.

4 Good understanding of both of the given concepts is demonstrated. The business

Example. Paragraph 1: Meaning of globalization, issues of globalization, its impact

Crowdsourced by IB Business Management Students for May 2017 Examination

Mark Scheme addition:

Crowdsourced by IB Business Management Students for May 2017 Examination

Criterion C: Reasoned arguments

1 Statements are made but these are superficial.

2 Relevant arguments are made but these are mostly unjustified.

3 Relevant arguments are made and these are mostly justified.

Mark Scheme additions:

Crowdsourced by IB Business Management Students for May 2017 Examination

Following should be kept in mind for presenting the answer:

Mark Scheme additions:

Change, Culture, Ethics, Globalization, Innovation & Strategy

Original Reddit thread: https://redd.it/669uiv

Change: The adaptation of business objectives, strategies and operations to accommodate

Introduction: 1. Define Globalization 2. Define Change 3. Introduce Starbucks: international

- With reference to an organization of your choice, discuss the importance of innovation

- With reference to an organization of your choice, examine the effects of globalization

- With reference to an organization of your choice, discuss the importance of innovation

- With reference to an organization of your choice, examine the impact of globalization

- With reference to an organization of your choice, discuss the influence of ethical

Warning: Do NOT use organizations from the case study/from section

● As of September 2013, Google operated 70 offices in more than 40 countries (Source).