BMT
"If the only tool you have is a hammer, everything looks like a nail.”
- Abraham Maslow (1966), American psychologist and author of Maslow's hierarchy of needs
The new Business Management Toolkit (BMT) is a set of interrelated tools and techniques that can be used by students in different disciplinary and interdisciplinary contexts across the contents of the new syllabus, including assessments (such as the IA and the Business Management EE).
The BMT is part of the syllabus content but it is expected that teachers will integrate the toolkit throughout the teaching of the new course.
The BMT provides a valuable set of tools or frameworks to analyse different topics and situations in the context of the Business Management course. The toolkit will include content in the current syllabus but also new materials too.
The Business Management Toolkit consists of 15 different tools. Eight of these are applicable to both SL and HL students, whilst an additional seven are included for HL students. The tools in the BMT can be categorised as:
Situational tools - These tools are used to help businesses assess aspects of their internal and/or external environments, such as SWOT analysis and STEEPLE analysis.
Planning tools - These tools are used to help businesses prepare for certain tasks and projects as well as their implementation, such as business plans, critical path analysis (HL only) and Gantt charts (HL only).
Decision-making tools - These tools are used to help businesses make strategic choices by considering different factors in order to make rational decisions and to minimise risks, such as decision trees, the Boston Consulting Group matrix, and the Ansoff matrix.
Top tip 1!
Despite the definitions above, it is important to note that the 15 tools in the BMT may have overlapping applications. This means that any particular tool can therefore be classified under two or more categories.
The fifteen tools (eight for SL students) should be used to analyse and evaluate the syllabus content as well as applied in different business contexts. Hence, the IB advises teachers to integrate the toolkit in every unit of the course. There are suggestions for this in the official syllabus as well as in the teacher support material (TSM) available on My IB. Further guidance is given throughout the content pages on InThinking alongside the syllabus content.
The IB's recommended teaching hours for the SL BMT content are:
10 hours for SL students
35 hours for HL students.
These are not prescribed hours, so you will need to decide on what works best for your individual circumstances and school context. The tools in the BMT are outlined in the table below. Click on the hyperlink to access more details about each of these.
Please note, as stated on page 13 of the revised guide (May 2022), all of these tools must be taught (at AO2 and AO4 level) alongside the contents of the syllabus. For example, students need to be able to define all five specified circular business models, as well as be able to calculate the mean average (descriptive statistics) and plot scatter points on a diagram to determine the line of best fit (simple linear regression).
Note that for exam questions it is the syllabus content that is being analyzed and evaluated not the BMT itself. The tools can be used in any and all parts of the Business Management syllabus content. For example, the question could be:
Using STEEPLE analysis, discuss whether Company A should acquire Company B.
Mergers and acquisitions are an AO3 in Unit 1.5 of the syllabus. For the BMT, only AO2 and AO4 apply, i.e., application of the tools in the context of the exam question. Hence, students will not be asked to evaluate (AO3) the tools in the BMT. For example a question such as "Evaluate the use of SWOT analysis for Company A." will not be asked in the examinations. Instead, the question might look like this:
Using Ansoff’s matrix, evaluate the growth strategies for Company X.
Essentially, the tools in the BMT can be used as a framework to answer extended response questions in the external examinations.
/the-bmt.jpg)
| Tool | Category | Description | |
| 1 | SWOT analysis | Situational tool | SWOT analysis considers the strengths, weaknesses, opportunities and threats of a business at a specific point in time. Strengths and weaknesses are internal factors that influence the business, while opportunities and threats are external factors which the business has no direct control over. |
| 2 | Ansoff's matrix | Decision-making tool | The Ansoff matrix is a framework of generic growth strategies for a business, based of providing new or existing products in new or existing markets. These four generic growth strategies are categorised as (i) market penetration, (ii) market development, (iii) product development, and (iv) diversification. |
| 3 | STEEPLE analysis | Situational tool | This framework considers factors in the external environment that affects a business. STEEPLE refers to the social, technological, economic, environmental, political, legal and ethical aspects of the external environment. It provides an overview of or insight into these external factors that are largely beyond the control of the organization. |
| 4 | Boston Consulting Group matrix | Situational tool Decision-making tool | The Boston Consulting Group (BCG) matrix allows manager to assess their organization’s product portfolio based on measures of relative market share and market growth. It helps with long-term strategic planning and decision-making based on four categories of products: (i) question marks, (ii) stars, (iii) cash cows, and (iv) dogs. |
| 5 | Business plan | Planning tool | This is an official guiding document that provides details of the organization's strategic goals and how the business intends to achieve these, with reference to the firm's human resources, finances, marketing, and operations management. It is also commonly used to secure loans from financial lenders as well as raising finance from investors. |
| 6 | Decision trees | Decision-making tool | This tool is a graphical representation of showing the probable outcomes of a business decision, based on the likelihood of success or failure of such a decision. The diagram shows the various choices faced by a business, including estimates of the costs and benefits in order to determine the probable risks of a specific courses of action. |
| 7 | Descriptive statistics | Decision-making tool | This quantitative tool is used to summarise a given set of data to support statistical and data analysis. The various techniques help to present a large amount of quantitative data in a simplified and more manageable format. There are eight techniques specified for this tool: (i) Mean average, (ii) modal average, (iii) median average, (iv), bar charts, (v) pie charts, (vi) infographics, (vii) quartiles, and (viii) standard deviation. |
| 8 | Circular business models | Decision-making tool | These models explore how businesses create value for their customers and other stakeholder groups whilst also reducing the environmental impacts of their operations. There are five circular business models specified in the syllabus: (i) circular supply models, (ii) resource recovery models, (iii) product life extension models, (iv) sharing models, and (v) product service system models. |
| 9 | Gantt charts (HL only) | Planning tool | This visual tool helps managers to plan and schedule different tasks or jobs within a particular project. It illustrates the tasks or activities, their duration, and dependencies in order to determine the shortest time required to complete the project and helps managers to schedule resources to complete each task and to keep the overall project on track to be completed on time. |
| 10 | Porter's generic strategies (HL only) | Decision-making tool | This commonly used tool helps managers to explore how a business can gain competitive advantages to help determine its strategic direction. These generic strategies comprise of: (i) cost leadership (producing at a lower cost of competitors), (ii) differentiation (providing products with a distinctive or unique selling point), and (iii) focus (selling specialized product aimed at specific market segments). Focus strategies are further categorised as (i) cost focus and (ii) differentiation focus. |
| 11 | Hofstede's cultural dimensions (HL only) | Situational tool | This tool helps managers to understand the cultural similarities and differences that exist between and across different countries. This helps them to determine more appropriate ways to conduct their operations given different national and international settings. The tool suggests that countries can be categorised into one of six different cultural dimensions: (i) power distance, (ii) individualism vs collectivism, (iii) masculinity vs femininity, (iv) uncertainty avoidance, (v) long-term vs short-term orientation, and (vi) indulgence vs restraint. These six cultural dimensions provide a framework for comparing and contrasting the different values and behaviours of people from different cultures, helping decision makers and organizations to navigate cultural diversity and nuances as well as to adapt their approaches in international business and communications. |
| 12 | Force field analysis (HL only) | Situational tool Decision-making tool | This visual and quantitative tool is used by managers to examine the forces for and against change to make more-informed business decisions. It is useful during the planning and decision making stages of corporate strategy and change management. It provides an overview, in an easy to understand format, by illustrating and adding statistical weights to each of the driving and restraining forces identified in the analysis. |
| 13 | Critical path analysis (HL only) | Planning tool | This planning tool helps project managers to schedule and oversee large and complex projects to ensure efficient resource use and for the timely completion of the project. It maps out all the individual tasks or activities needed to complete the project so that realistic deadlines for a project can be set. The syllabus specifies HL students need to be able to: (i) complete and analyse a critical path diagram. (ii) identify the critical path from a diagram, and (iii) calculate the free and total float from a CPA diagram. |
| 14 | Contribution (analysis) (HL only) | Decision-making tool | This quantitative tool is used to support business decision-making by enabling manager to analyse and evaluate different cost and revenue situations. This tool comprises of three techniques in the syllabus: (i) make or buy analysis, (ii) contribution costing, and (iii) absorption costing. |
| 15 | Simple linear regression (HL only) | Decision-making tool | This quantitative tool comprises of three techniques used to identify, describe, and/or predict the relationship between dependent and independent variables under investigation. The three techniques covered in the course are: (i) scatter diagrams, (ii) line of best fit, and (iii) correlation/extrapolation. |
Always use the right tools for the right job
Top tip 2!
You can download a BMT poster to use with students in class, available from My IB, by clicking the link here.
Please also note the following:
Students are expected to use the BMT in answering specific examination questions, e.g., Specimen HL P2 Q4d (STEEPLE analysis) and Q5d (BCG matrix). An example is "Using the data provided in Table X, the information in the stimulus, and a Boston Consulting Group (BCG) matrix, recommend to Company Y which product should be removed from its portfolio in order to remain profitable."
The BMT can be explicitly examined, e.g., see Specimen HL P2 Q3 (b) (i) and (ii) refer to the mean average, and (b) (iii) refers to the line of best fit.
The BMT is applied to the content of the syllabus whilst the context is given in the question paper in the examination. Two examples are provided below for illustrative purposes:
Unit 1.5 - Using a SWOT analysis, discuss whether Company A should merge with Company B (mergers and acquisitions AO3).
Unit 2.1 - With reference to force field analysis, explain the reasons for resistance to change amongst the employees in Company X (reasons for resistance to change in the workplace AO2).
Students will not be asked to analyse or evaluate the tools in isolation. For example a question such as “Evaluate SWOT analysis as a business management tool” will not be asked in the examination.
The BMT can be a useful basis for inquiry, e.g., using Ansoff’s matrix, evaluate the growth strategies for an organization of your choice. There are suggestions for the integration of each tool in the BMT (click the hyperlinks in the above table).
Top tip 3!
Any appropriate combination of the tools in the BMT can be used in the new Business Management Internal Assessment and Extended Essay.
Students will be suitably rewarded if these tools are relevant to the investigation and the specific research question, accurately applied, with a clear understanding demonstrated.
In all cases, students are advised to use the tool(s) that best address the issue being investigated.
Approaches to delivering the BMT
There are several ways that teachers can use to deliver the BMT in their lessons. Two commonly used approaches are outlined below.
Approach 1 - Using multiple tools for a specific unit in the syllabus
Take the example below that shows how two of the tools in the BMT can be used in the integration of Unit 2.4 Motivation and demotivation:
BMT 7 Descriptive statistics - Discuss how descriptive statistics might be used to provide relevant information and data in the appraisal process.
BMT 11 Hofstede’s cultural dimensions (HL only) - How does knowledge of cultural dimensions help managers to understand what motivates different people?
BMT 11 Hofstede’s cultural dimensions (HL only) - Is it culturally acceptable to use 360-degree appraisals?
Here is another example of this approach, for delivering Unit 4.5 (the marketing mix):
BMT 4 Boston Consulting Group matrix - Discuss how the BCG matrix can help with a firm’s pricing decisions.
BMT 5 Business plans - Discuss the importance of pricing decisions in a business plan.
BMT 10 Porter’s generic strategies (HL only) - Discuss how Porter’s generic strategies can support managers in their pricing decisions, such as the use of penetration or predatory pricing methods.
Approach 2 - Using a single tool in the BMT for multiple units in the syllabus
Take the example below that shows how BMT 2 (Ansoff matrix) can be integrated into the teaching and learning of various units of the syllabus:
Unit 1.3 - Examine how Ansoff’s matrix can aid decision making about organizational objectives.
Unit 1.5 - Using the Ansoff matrix, evaluate the growth strategies for an organization of your choice.
Unit 1.6 - Examine market development as a growth strategy for a MNC of your choice.
Unit 4.2 - Distinguish between differentiation and diversification.
Unit 4.5 - Discuss how Ansoff’s growth strategies can extend the life cycle for a product of your choice.
BMT 1 (SWOT analysis) - Discuss the merits of using both a SWOT analysis and the Ansoff matrix to inform management decision making.
The last example shows how a particular tool (Ansoff's matrix in this case) can be integrated with other tools (such as SWOT analysis) in delivering the course. This can help students to consolidate their understanding and application of the tools.
A second example, for BMT 10 (Porter’s generic strategies - HL only) is shown below:
Unit 1.5 - How does knowledge of Porter’s generic strategies help with an organization’s internal and external growth strategies?
Unit 4.1 - Discuss how market leadership enables businesses to gain competitive advantages.
Unit 4.2 - Examine how Porter’s generic strategies can help a business to achieve market positioning success.
Unit 4.5 - Discuss elements of the marketing mix (including branding, product differentiation, and promotional strategies) in relation to Porter’s generic strategies.
Unit 5.3 - How do cost leadership and cost focus strategies support lean production methods, productivity, and capacity utilization in order to reduce cost?
Unit 5.8 - Why is the protection of intellectual property rights for a successful differentiation strategy?
A combination of both approaches has been adopted throughout the InThinking website. You can find suggestions for the integration of each tool in the BMT at the end of each webpage for the specific tool.
Suggested areas where the 15 tools in the BMT can be used throughout the five topic areas in the syllabus are given below. Please click on relevant tab to access the questions/suggestions.
Download a useful PDF document to support students in their application of the BMT as they progress through the course from My IB. You can use the link here to access the DP Business Management Teacher Support Material (TSM).
Selected Pages
/cpa---construction.jpg)
BMT
BMT 13 - Critical path analysis (HL only)
Business Management Toolkit 13 - Critical path analysis (HL only)Critical path analysis (CPA), also referred to as network...
.jpg)
BMT
BMT 6 - Decision trees
Business Management Toolkit 6 - Decision treesA decision tree is a quantitative and methodical organizational planning...
BMT
BMT 10 - Porter's generic strategies (HL only)
Business Management Toolkit 10 - Porter's generic strategies (HL only)Professor Michael Porter (b.1947) of Harvard Business...
BMT
BMT 7 - Descriptive statistics
Business Management Toolkit 7 - Descriptive statistics“Statistics suggest that when customers complain, business owners...
BMT
BMT 1 - SWOT analysis
Business Management Toolkit 1 - SWOT analysisSir Richard Branson has proven that business opportunities exist even if they...
BMT
BMT 3 - STEEPLE analysis
Business Management Toolkit 3 - STEEPLE analysis“The reasonable man adapts himself to the world; the unreasonable one...