IB Diploma Programme Business Management — SL & HL
Every IB DP Business Management formula and framework in one place — finance ratios, HR & marketing calculations, strategic models, CUEGIS, and exam technique for Papers 1, 2, 3, and the IA.
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Aligned with the latest 2026 syllabus and board specifications. This sheet is prepared to match your exam board’s official specifications for the 2026 exam series.
IB Business Management blends qualitative analysis with numerical ratios and decision tools. This sheet brings together every formula you'll need (finance, HR, marketing) and the strategic frameworks that anchor your analysis — fully aligned to the SL and HL syllabus, including CUEGIS for HL extension.
Every finance ratio, break-even, and investment appraisal formula
HR and marketing formulas with worked-style cues
Strategic frameworks: SWOT, PESTLE, Porter, Ansoff, BCG, marketing mix
CUEGIS for HL plus Paper 1, 2, 3 and IA exam technique
All IB Business Management content sits inside one of these five units.
Nature of business activity | Types of organisations (sole trader, partnership, private/public limited, NPOs, social enterprises) | Organisational objectives (mission, vision, aims, SMART) | Stakeholders (internal vs external; conflict & overlap) | Growth & evolution | Multinational corporations (MNCs) Workforce planning | Organisational structures | Communication | Leadership & management | Motivation theories | Industrial/employee relations Sources of finance | Costs & revenues | Break-even | Final accounts | Profitability & liquidity ratios | Efficiency ratios (HL) | Cash flow | Investment appraisal | Budgets (HL) The role of marketing | Market planning | Sales forecasting (HL) | Market research | The 4Ps & 7Ps marketing mix | International marketing (HL) | E-commerce Production methods | Lean production & quality management (HL) | Location | Production planning (HL) | Research & development (HL) | Crisis management & contingency planning (HL) Numerical questions reward precise formulas with units (£/$, %, days).
Gross Profit Margin
(Gross Profit ÷ Revenue) × 100 Net Profit Margin
(Net Profit before interest & tax ÷ Revenue) × 100 ROCE (Return on Capital Employed)
(Net Profit before interest & tax ÷ Capital Employed) × 100 Current Ratio
Current Assets ÷ Current Liabilities (healthy ≈ 1.5–2) Acid-Test (Quick) Ratio
(Current Assets − Stock) ÷ Current Liabilities (healthy ≈ 1) Gearing Ratio
(Long-term Debt ÷ Capital Employed) × 100 — over 50% is highly geared Debtor Days
(Debtors ÷ Total Sales Revenue) × 365 Creditor Days
(Creditors ÷ Cost of Sales) × 365 Stock Turnover (times)
Cost of Sales ÷ Average Stock Stock Turnover (days)
(Average Stock ÷ Cost of Sales) × 365 Contribution per Unit
Selling Price per Unit − Variable Cost per Unit Total Contribution
Contribution per Unit × Quantity Sold Break-Even Quantity
Fixed Costs ÷ Contribution per Unit Margin of Safety
Actual Output − Break-Even Output (in units) Target Profit Output
(Fixed Costs + Target Profit) ÷ Contribution per Unit Payback Period
Years until cumulative net cash inflow = initial investment (interpolate within the recovery year) ARR (Average Rate of Return)
(Average Annual Profit ÷ Initial Investment) × 100 NPV (concept)
Sum of discounted future cash flows − initial investment. Positive NPV → accept IRR (concept)
Discount rate at which NPV = 0. Compare to firm's required rate of return Quantitative questions appear in Paper 2 — know these by heart.
Labour Turnover
(Number of staff leaving in a period ÷ Average number of staff) × 100 Productivity
Total Output ÷ Total Input (e.g. units per worker per hour) Absenteeism Rate
(Number of days absent ÷ Total possible working days) × 100 Market Share
(Firm's Sales Revenue ÷ Total Industry Sales Revenue) × 100 Market Growth Rate
((This Year's Market Size − Last Year's) ÷ Last Year's) × 100 Sales Forecasting (Moving Averages, HL)
Calculate centred moving averages → identify trend → seasonal variation = actual − trend → forecast = trend + average seasonal variation Price Elasticity of Demand (PED)
% Change in Quantity Demanded ÷ % Change in Price (negative; |PED|>1 elastic, <1 inelastic) Income Elasticity of Demand (YED)
% Change in Quantity Demanded ÷ % Change in Income (positive = normal good; negative = inferior) Cross Elasticity of Demand (XED)
% Change in Quantity Demanded of A ÷ % Change in Price of B (positive = substitutes; negative = complements) Apply these explicitly with named factors — never just list the acronym.
Internal: Strengths, Weaknesses | External: Opportunities, Threats SWOT identifies factors — strategy comes from matching them (e.g. SO/WT/ST/WO).
Political | Economic | Social | Technological | Legal | Environmental Threat of new entrants | Threat of substitutes | Bargaining power of buyers | Bargaining power of suppliers | Competitive rivalry Existing market × existing product
Market Penetration (lowest risk) New market × existing product
Market Development Existing market × new product
Product Development New market × new product
Diversification (highest risk) Stars (high share, high growth) | Cash Cows (high share, low growth) | Question Marks/Problem Children (low share, high growth) | Dogs (low share, low growth) Cost Leadership (broad, low cost) | Differentiation (broad, unique value) | Focus (narrow segment — cost focus or differentiation focus) Porter argued firms 'stuck in the middle' underperform.
4Ps (goods)
Product | Price | Place | Promotion +3Ps (services, 7Ps)
People | Process | Physical Evidence Product Life Cycle
Introduction → Growth → Maturity → Decline (extension strategies prolong maturity) HR theory questions reward named theorists and concrete application.
Maslow's Hierarchy
Physiological → Safety → Social → Esteem → Self-actualisation (lower needs first) Herzberg Two-Factor
Hygiene factors (pay, conditions) prevent dissatisfaction | Motivators (recognition, achievement) drive satisfaction Taylor (Scientific Management)
Money is the primary motivator — piece rates, time-and-motion studies McGregor X & Y
Theory X: workers dislike work, need control | Theory Y: workers seek responsibility, are self-motivated Autocratic (top-down) | Democratic (consultative) | Laissez-faire (hands-off) | Paternalistic (caring, but directive) | Situational — Hersey-Blanchard (telling, selling, participating, delegating based on follower readiness) Flat vs Tall
Flat = wide span of control, fewer layers, faster communication | Tall = narrow span, more layers, clearer hierarchy Centralised vs Decentralised
Centralised = decisions concentrated at top | Decentralised = authority delegated locally Other forms
Functional | Product-based | Geographic | Matrix | Project-based | Shamrock (Handy) The six concepts that thread through HL Paper 1 and Paper 3.
Change
Internal/external drivers of change; Lewin's force-field analysis; managing resistance Culture
Organisational culture (Handy: power, role, task, person); national culture (Hofstede) Ethics
Stakeholder vs shareholder approach; CSR; ethical codes; whistleblowing Globalisation
Cross-border trade & MNCs; opportunities and threats; localisation vs standardisation Innovation
Product, process, positional, paradigm | Incremental vs disruptive | R&D investment Strategy
Long-term direction and scope — links every framework (SWOT, Ansoff, Porter) back to business goals Match your answer style to the assessment objective.
Issued before the exam — read deeply and prepare frameworks.
SL: 1h 15m, ~75 marks | HL: 2h 15m, ~60 marks (deeper, includes CUEGIS Section C) | Apply SWOT/PESTLE/Porter/Ansoff to the case — never abstractly | HL Section C: integrate 1+ CUEGIS concept with at least one tool Unseen stimulus with quantitative and qualitative parts.
SL: 1h 45m | HL: 2h 45m | Section A: ratios, break-even, IRR/NPV, ratio interpretation | Section B: qualitative case-style essays | HL Section C: 20-mark essay applying frameworks across concepts Always show working in numerical questions — examiners award method marks.
Unseen stimulus on a social enterprise — apply HL toolkit and CUEGIS.
1h 15m, 25 marks | One question: recommend a course of action with justified analysis | Use 2+ analytical tools + CUEGIS + ethical/stakeholder reasoning Research project on a real-world organisation.
SL
Written commentary, 1500 words. Based on a written research question, secondary data HL
Research project, 2000 words. Forward-looking research question, primary + secondary data, supporting documents Worth 25% (SL) and 25% (HL) of the final grade.
Boost your Cambridge exam confidence with these proven study strategies from our tutoring experts.
Paper 2 numerical questions are highly predictable. Drill ratios, break-even, and investment appraisal until you can complete each in under 3 minutes.
Examiners reward applied SWOT/PESTLE/Porter with named factors from the case. Never write a framework in isolation.
HL Paper 1 Section C and Paper 3 require explicit CUEGIS reasoning. Prepare 2 examples per concept across different cases.
Choose an IA organisation early, gather data steadily, and apply 2–3 tools deeply rather than 6 superficially.
Quick answers about this free PDF and how to use it for exam revision and active recall.
Yes. This Tutopiya formula sheet is free to use and you can download it as a PDF from this page for offline revision. There is no payment or account required for the PDF download.
This page groups key Business Management formulas in one place for revision. Master IB Diploma Programme Business Management (SL & HL) with this 2026 formula sheet. Covers all five units, finance ratios, HR & marketing formulas, strategic frameworks (SWOT, PESTLE, Porter, Ansoff, BCG), CUEGIS,… Always cross-check with your official syllabus and past papers for your exam session.
No. In the exam you must follow only what your exam board allows in the hall—usually the official formula booklet or data sheet where provided. This page is a revision and teaching aid, not a replacement for board-issued materials.
It is written for students preparing for assessments at Post-Secondary in Business Management, including classroom revision, homework support, and independent study. Teachers and tutors can also share it as a quick reference.
Work through past paper questions, quote the correct formula before substituting values, and check units and notation every time. Pair this sheet with timed practice and mark schemes so you see how examiners expect working to be set out.
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Work through finance ratios, strategic frameworks, CUEGIS, and Paper 3 with an experienced IB DP Business Management tutor. We focus on numerical accuracy, framework application, and top-band exam technique.
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This formula sheet aligns with the IB Diploma Programme Business Management syllabus (SL & HL) for first assessment 2026.
Always show working in numerical questions and apply strategic frameworks with explicit reference to the case stimulus.