hat is concept-based learning? ‘oncept-based learning (CBI) fonsultant Dr. H. Lynn Eri nat frames facts (content) and skills with concepts of the as defined by education son, isa three-dimensional model susiness Management (BM) course - change, culture, ethics, lobalization, innovation and strategy. The rigour of the BM. jourse creates two approaches to teaching and learning: either udents can be told what they need to know (based on factual cnowsledge and skills in BM) or teachers can get their students cited enough to discover and deepen their understanding of IM for themselves. Skill Fae Figure 6.1.a The three-dimensional framework of concept-based learning he twventy-first century learner lives in a mobile and digital orld with access to facts and information at their fingertips. As lucationalsts, wecannotexpectour studentstolearn evermore fontent in BM. However, we have to help students to connect 3 factual knowledge to more permanent (timeless) concepts Pp advance knowledge and understandings (see Table 6.1.2 on age 558), In. BM, concepts are used to give students the tools ecessary to make sense ofthe world, Supporters of CBL argue hat itis through these conceptual lenses (tools) that learning rly begins to make sense for students, .1 Concept-based learning: Introducing the CUEGIS concepts The world is moving at a tremendous rate. Going no one knows where. We must prepare our children, not for the world of the past. Not for our world. But for their world. The world of the future. John Dewey (1859-1952), American educational leader, philosopher and psychologist Concept-based learning is ot about learning facts and figures in isolation, Instead, CBL is about encouraging students to: + think beyond the factual contets of the BM course + beactive learners rather than passive learners (forexample, there is huge scope in BM to use learning technologies to engage our learners) + be inquiring and curious learners who want to further their understanding and knowledge (perhaps through the use of real-world case studies that would interest our students) + make connections of knowledge in BM to the CUEGIS concepts (change, culture, ethics, _ globalization, innovation and strategy), i. ideas transferable across BM. topics + apply their knowledge and thinking to solve problems using an organized framework (CUEGIS) + develop a deeper understanding of BM topics that learners ree) find of personal interest, relevance and meaning + use multiple sources and media to gain knowledge + recognise the transferability of knowledge to familiar and unfamiliar situations + discuss and collaborate with peers to progress in their learning + organize and make sense of their own learning. + make meaning of their learning + think critically and creatively to solve problems + extend knowledge to understanding. + own and drive their own learning in a synergistic way. 997eer Ts Table 6.1.2 ‘The difference between knowledge and understanding er as Knowledge! ‘Understanding © Factual awareness, connected to a particular time, place or situation. Knowledge changes over time. Conceptual appreciation of factual knowledge that transfers, through time and across situations and cultures. Concepts are | timeless. Example: According to FW. Taylor (1911), people are motivated by money, so scientific management can be used to create a one ‘best way’ to increase productivity There is no single way to motivate all people all ofthe time in all] situations across all cultures. Change can bring about positive | 4 and negative impacts on motivation. 4 Example 2: Budgets can be used as a control tool to ensure ‘managers are held accountable for thelr activities. Budgets can constrain innovation, yet are shaped by the culture of the organization and are vital to its business strategy. Concept-based learning in Business Management ‘The traditional curriculum is designed to be ‘topic based’ (or content based) rather than ‘concept based’ However, critics of content-based curricula argue that the model is outdated (just ask Google!) and does not encourage twenty-first century learners to develop personal intellects. CBL. is ideal for the BM course as it promotes a more holistic approach to create a deeper understanding of the subject content, The CUEGIS concepts create six conceptual lenses through which students (and teachers) investigate, analyse and evaluate factual content to create a deeper understanding of Business Management. One of the arguments in favour of a CBL approach to BM is that a content-driven syllabus, which requires students to memorise facts and information, rarely engages learners or challenges their intellects. Motivation experts such as Pink (see Unit 2.4) suggest that being personally engaged drives motivation. The same applies to CBL ~ students who are personally and intellectually engaged are far more likely to be motivated t0 learn. Compare the different experiences for learners who face ‘chalk and talk’ lessons on the following topics (in an abstract, and unengaging way) compared to using a CBL approach: + The 4Ps of Marketing (Unit 4.5) - students can be challenged in their personal learning and application by being involved in an interschool marketing competition (huep:/!goo.gl/dC8kv5). + Business organizations (Unit 1.2) ~ students can gain hands-on experience in setting up and running a business. organization by being involved in Young Enterprise (http://goo.glineXMCc) or the Junior Achievement ‘Company Programme (http://goo.gl/Nu]7z0). 558 + Teamworking asa form of non-financial motivation 4 (Unit 2.4) ~ students can get more engaged in their 4 learning and understanding of how teamworking can ‘work as a form of motivation by taking the Marshmallow Challenge (http://goo.gltepl) An alternative way to view CBL in Business Management isto use the triangle model (see Figure 6..b). This consists ofthe content of the syllabus, integrated with business case studies to provide a context to the learning, and embedded in concepts to transcend understanding of Business Management. An 4 example of a classroom activity that embraces these building blocks isto get students to investigate how marketing strategy is affected by Culture, Fthics, Globalization and Innovation ina country oftheir choice Concepts (change, culture, ethics, globalization, innovation, strategy) 2 NX BM syllabus) ee ) | 1 Content context | estat nd lee tools theores and | | examples) | techniquesinthe | Figure 6.1.b The triangle model (building blocks) of Business Management © IBO, 2014The CUEGIS concepts in examination questions Examples of the types of questions in Paper 2 Section C HL) include: + With reference to an organization that you have studied, examine how innovation and change have brought about 1 change in human resource management. + With reference to an organization or country of your choice, examine how promotion in the marketing mix is affected by culture and ethics + With reference to a multinational company you have studied, discuss the importance of innovation and globalization in the company’s product strategy. + Examine how the concepts of globalization and ethics have impacted on the extended marketing mix for a company of your choice + With reference to one organization that you have studied, compare and contrast the importance of innovation and. of culture for research and development. + Discuss how ethical considerations and cultural differences may influence employer-employee relations in an organization that you have studied, + Examine how innovation and cultural differences may influence marketing strategies in an organization of your choice Concept-based learning — Give it ago Decide how you or your colleagues can best move from a traditional content-driven approach of teaching atopic (such as corporate social responsibility) by applying the triangle model, ie. how would you move from the ‘conten’ (of teaching CSR) to the triangular model of ‘content, contexts, concepts’? low would you integrate the conceptual lenses (of change, strategy) {hcoughout the 37 topics in the Business Management course? Consider the following example for Budgeting, (See Unit 3.9 for nore detail on Budgeting.) Fculture, ethics, globalization, innovation and cere si Ree ess Budgeting and the CUEGIS concepts + Change - The changing business environment may require adjustments to corporate plans and budgets, but does this mean that flexible budgets are better than zero budgeting? How do changes caused by natural disasters impact on the budgeting of businesses? + Culture ~ How do corporate culture and cross-border cultures impact on how budgets are set and managed? How does organizational culture and the impact of the leader influence budgeting? + Ethics — All budget holders are responsible for the money of their organization, yet this responsibility carries ethical considerations. History bas 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 firms to benefit from economies of scale (see Unit 1.6), Whilst this reduces the average costs of production, exchange rate fluctuations 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? rategy ~ Budgets are integral to any business strategy as finance is needed to fund all business ventures, eg. a growth strategy entails larger budgets to be allocated to finance larger scale operations, feet 559a Using the CUEGIS concepts in Business Management Change When you're finished changing, you're finished. Benjamin Franklin (1706-1790), one of the Founding Fathers of the United States of America thIE US novelist, Ellen Glasgow (1873-1945) said, “All change is not growth, as all movement is not forward’. In other words, change should only be pursued if there is a clear purpose. Figure 6.1.c shows the two different forces of change. Driving, forces push for change whilst restraining forces act against change. Due to the conflicting forces, change must be managed within organizations if they are to move forward and remain competitive, The relative strength of these forces determines whether the change should take place. Before instigating any organizational change, managers must ask themselves: + Why is change needed? + What do we hope to achieve with such change? + Who is affected by this change and how are they likely to react to the change? + How will we know that the change has been successfully implemented? “This set of questions is reccurring as businesses constantly face change. A popular management tool to aid this process is force field analysis (see Unit 1.7), which acts as a framework for helping managers to understand the pressures for and against any change situation. By identifying these forces, managers are able to assess the effects that the forces may have and to decide ‘ona course ofaction, Managers can then plan to strengthen the forces supporting a decision for change, and reduce the impacts, ‘of opposition to it (see Figure 6.1.) 560 Driving forces (eg. productivity gains) tiaad Current situation 7 TT (eg. resistance to and fear of change} Figure 6.1.¢ Forces of change There are usually four phases of change (FRIA), all of which need to be managed although to varying degrees: + Fear of the unknown + Rejection due to misunderstandings of the need or purpose of change + Interest (buy-in from the staff) + Acceptance of the need for and purpose of change. Case study q Businesses that have changed their names include Toy: 1.Us formerly known as Children’s Supermarts) Japan’ Nintendo was créated in 1889 as Marafuku ‘Compariy Nissan was originally Datsun. Panasonic was éallét Matsushita Electric Corporation. Pepsi was called Brad’ Drink. Nike started off as Blue Ribbon Sports. Google wai originally called BackRub!rapid rise in demand for digital cameras, thé market for camera films (dominated by Kodak) died a pretty quick death. At the tum 6f the millennium, Kodak had clearly ignored the change of time CX its global workforce and increased production of the old technology (camera film). By 2006, Kodak was selling an obsolete product. In 2013, the company filed for bankruptcy protection. Culture Apeople without the knowledge of their past history, origin and culture is like a tree without roots Marcus Garvey (1887-1940) Jamaican political leader and entrepreneur Culture is about the norms of an organization, a country or other social grouping. Culture shapes the values, beliefs and customs of people (see Unit 2.5). HSBC's global slogan “The Worlds Local Bank’ highlights the importance of cultural awareness when doing business in overseas markets, Take a look at some of their advertisements available on YouTube to gain a better understanding of the importance of local knowledge for ‘multinational companies: + Cultural differences in dining between English and Chinese etiquette: http://goo.gl/eOatfd + Cultural differences when travelling on the train: http:// goo.gl/mjXTH + A series of seven HSBC advertisements are available here ‘on YouTube: http://goo.gl/lw7k2x This short clip from National Geographic follows several Sudanese men who travel to the USA and discover some interesting cultural differences: http:/{goo.glumPbt. What lessons can managers learn from the awareness of cultural differences and the role of culture in consumer behaviour? Other culture-related questions relevant to Business Management include: Introducing the CUEGIS concepts ‘+ What are the cultural norms in your country regarding work-life balance? + Do you know about the business etiquette in your country? What about in other countries? See Box 4.7.c for some examples. + What does ‘human rights’ mean in your country? How is this translated in the workplace? + How are equal opportunities interpreted in your country? To what extent do gender inqualities exist in your culture? What does ‘inequality’ mean? To whom? + Should all schools abandon their homework policies to allow students (and parents) to take more ownership of their own learning? Wouldn't this better promote the traits ofthe IB Learner Profile? Culture has a direct impact on our learning. Take the following theorists as example. Do you know what they all have in + H.Gantt ~ Gantt charts (Unit 1.7) +E Herzberg ~ Motivation theory (Unit 2.4) + D-H. Pink ~ Motivation theory (Unit 2.4) + Maslow ~ Motivation theory (Unit 2.4) + EW. Taylor Motivation theory (Unit 2.4) + JS. Adams ~ Motivation theory (Unit 2.4) + John Paul Kotter ~ Resistance to change (Unit 2.6) + Philip Kotler ~ Social marketing (Unit 4.1) + Jack Trout ~ Perception mapping (Unit 4.2) + EJ. McCarthy ~ The 4Ps of marketing / the marketing mix (Unit 4.5) + JC Levins ~ Guerrilla marketing (Unit 4.5) + BH. Booms & MJ. Bitner ~ The extended marketing mix 1 the 7Ps (Unit 4.6). 561 reer[Apart from they all feature in the BM syllabus(’), the theorists are all from the U knowledge and understanding of BM? Does this matter? ‘A. How does cultural bias affect our Language is an integral part of culture. Even in countries that share a common language (such as Australia, USA and UK), cultural differences are embedded in language (see Table 6.1.b) Table 6.1.b _English language and cultural differences Dummy Pacifier Boot Trunk Service station Gas station Footpath Sidewalk Jumper Sweater Jam Jelly Bill Check it Elevator Sauce Ketchup Soft drink Soda Biscuit Cookie Sweets Candy Nappies Diapers SS A ZA ‘Anorak Parka English person Pom Sausages Snag Underpants Jocks Trainers Runners Ws fine She's apples Excellent hee Chocolate Chokkie Flip flops Thongs 562 Ethics You cannot make yourself feel something you do ‘not feel, but you can make yourself do right in spite ofyour feelings. Pearl S. Buck (1892-1973), US writer and novelist Ethics are the socially accepted moral principles that guide decision-making, based on the collective belief of what is right and what is wrong. The rather subjective nature of ethics means it is not always clear what is ‘right’ or ‘wrong, especially wh looking at different cases from around the world. Consider the ‘examples below and discuss the extent to which you think each case is ethical? + In 2013, Gareth Bale (aged 24) became the world’s most expensive football player having switched from Londons Tottenham Hotspur to Spain's Real Madrid, who paid a world record 100 million euros ($137.7 million) for his services over six years. Bales weekly wages were reported. to be around $413 000, Le. $59 000 a day or more than $40, every minute, even when asleep! The UK prime ministers daily salary is around $622. + In 2014, the United Arab Emirates introduced a law for all new mothers to breastfeed their babies for at least two years (if they are physically able to), banning all forms of baby milk powder. The law also allows the husband to sue his wife ifshe refuses to breastfeed their baby. + In 2014, six-year-old schoolboy in the UK made headline news when he was suspended from school for four days ~ he had brought a cheese snack into school as part of his lunch, The ‘Mini Cheddars’ were deemed to contravene the school’s healthy eating policy. +The Education Post reported that Hong Kong parents send their babies to private tutors atthe age of just 15 months [Are Hong Kong people forcing their children to learn t00 much too fast? Isnt free play more important?Consider these questions based on business ethics. What are your opinions about each of these? + Is it acceptable for workers to browse the Internet and make personal telephone calls whilst at work? + Is it possible to ensure equity and equality in the workplace? + Isitright for a business to fabricate its financial accounts if this prevents job losses? + Should a business monitor the online activities, including ‘email communications, of employees? + Can taking the credit for the work of others ever be morally acceptable? + Can acting unethically ever be ‘good! for a business? + Does acting ethically hinder innovation? ee - es foethic ab cabout gh 6.1 Introducing the CUEGIS concepts WL able peensonk rabeetoatin ste “Pfizer 2009), + The 4JS.pharmaceutical ‘corhpany was fined an industty-records§2.: “the illegal marketing ‘of the arthritis deus reer 563Globalization To be yourselfin a world that is constantly trying to make you something else is the greatest accompiishment. Ralph Waldo Emerson (1803-1882), American poet Globalization provides both opportunities and threats for businesses: + Globalization considerably increases the level of competition, such as Vodafone (UK) competing with mobile operator ‘3; owned by Hutchison Telecom (Hong Kong). The internet has also reduced costs for ‘many industries, thereby reducing barriers to entry and attracting global competition, + Meeting customer expectations and needs becomes increasingly more demanding, Businesses must now meet the ever-greater customer demands for quality, service, price and after-sales care in order to have any competitive advantage. + Businesses that are able to build a global presence can benefit from economies of scale, such as the advantages of global marketing economies and risk-bearing economies (see Unit 1.6). Li Ka-Shing, Asia’ richest man, has a reported wealth of more than $28.8 billion, mainly accumulated through the sheer diversity ofhis businesses in the property, food, telecommunications, consumer electronics, utilities and ports industries CORE + Multinational companies have greater choice of location of their production facilites. Like many other global businesses, Apple has chosen to outsource production to China due to the relatively low costs of labour and rent Apple products are ‘Designed in California, Assembled in China’ The choice of location can therefore help to reduce the firmis costs of production, + Mergers, acquisitions and joint ventures allow businesses to grow at a faster pace than if they were to expand organically (see Unit 1.6). With globalization, businesses have more opportunities in their expansion plans. For example, BMW joint venture with Brilliance China Automotive in 2003 gave the German carmaker direct access to the lucrative Chinese market. + Mulkinational companies and e-commerce businesses in particular benefit from the increased customer base that globalization brings. With China and India both 564 embracing changes in the global business environment, there are vast opportunities for businesses that trade with the world’s two most populated countries (around 35% of the world’s population). Innovation Ifyou heara voice within you say, You cannot paint’ then by all means paint, and that voice will be silenced. Vincent van Gogh (1853-1890), Dutch post-Impressionist painter Innovations in the corporate world can empower businesses, Many of the most economically successful businesses and countries are the ones that innovate. Innovative entrepreneurs are those who come up with and commercialise a new idea or reinvent (redefine) an old idea In some cases, they even create new industries, such as smartphones and tablet computers, In today’s highly unpredictable business world, innovations ‘can give organizations a competitive edge. Hence, most large multinational companies are financially committed to Innovation applies to all aspects of business activities, not just products. Innovation is integral to kaizen (continuous improvements). Innovative entrepreneurs create new sources of revenue based on changing technology and other changes in the market, eg. changing demographics and changing customer demands (needs and wants). Management guru ‘Michael Porter said that innovation is the central issue for the prospects of a business and for the economic prosperity of a country, Henee, innovation forces managers to think creatively and more holistically about their entire business.6.1 Introducing the CUEGIS concepts Case study in 1973, Slade recorded Mery Christmas Bevel More than 40 years.on; the song remains top of the charts for royalty-earning Christmas songs, earning the group.an impressive $1.28 million each year! social Costs ¢ have unethical concern Strategy Ifyou don't drive your business you will be driven out ofbusiness. B.C, Forbes (1880-1954), Founder of Forbes magazine Strategy is about devising plans to achieve the long-term goals of an organization, ie. to get to where it wants to be. There are three stages to the strategy process (see Figure 6.1.) » 1. Strategic analysis 2.Strategic choice 3. Strategic implementation Figure 6.1.d The three stages of devising a strategy Stage I: Strategic analysis - determining the current position of an organization (where are we now?). ‘The German proverb, ‘Whats the use of running if you are not on the right road?’ is fiting, Most organizations strive to anticipate the future needs of their stakeholders in order to be successful. Strategic analysis is @ thorough review of an organization’ current situation. Itis concerned with examining an organizations vision, mission, aims and objectives ess because Strategic analysis is vital for the prosperity of a busi managers can become too focused on current needs so fal to see the future direction of the organization. It can help to provide a lear framework to aid decision-making. This can therefore help to allocate resources more effectively. It can also help to involve, inform and motivate all those involved and affected by the process. ‘Stage 2: Strategic choice - determining the desired future of the ‘organization (where do we want to be?) Ancient Chinese philosopher Lao Tzu said that “A journey of a thousand miles must begin with a single step” Strategic choice is concerned with generating strategic options for the organization so it can move on. It requires an assessment of the financial costs and benefits of the available choices and consideration of qualitative factors (the ‘PORSCHE®’ factors) before selecting the most appropriate strategy: + Predictions (intuition) ~ strategic choice is often based on the gut feelings of managers and their forecasts of changes in the future, + Objectives ~ a profit seeking firm will tend to prefer using quantitative methods in deciding on its business strategy ‘whereas charities may take a different approach. + Risk profile ~ firms with a low risk profile are less likely to choose strategies that incur high-risk, high-return investments, opting for lower risk projects with more certain returns. + State of the economy ~ in a booming economy, firms are more likely to choose higher-risk strategies. + Corporate image - managers must consider how a particular strategic choice might affect its public relations and corporate image. + Human relations ~ managers also need to consider the impact of a particular strategic choice on staff morale and whether there will be training needs (and costs). + External shocks - unquantifiable risks may have to be considered when making strategic choices. 565 PeersStage 3: the organization to where it wants to be (how do we get there?) Strategic implementation - determining the path to get Strategic implementation is about putting the selected plan (strategic choice) into practice and developing the strategy. Implementing strategy usually involves change and change management, Effective leadership is at the heart of successful change management and strategic implementation. Tools, concepts and theories that can aid strategic implementation include: brand development, external growth strategies (such ), flexible working practices, outsourcing and subcontracting, quality as joint ventures, strategic alliances and franchising ‘management, repositioning and workforce planning, Sera For HL students, be aware that Section C of the Paper 1 Ce ec cea es ees pe aca ec ae eed Sen acted Bree ee Pree ett ere enc Re ee aaa Limitations of strategy include + Strategic plans are devised by senior managers who are not necessarily directly affected by the plans in the same way as the workforce. ‘+The future is unknown; long-term trends are difficult, if rot impossible, to predict. + There is a large cost in creating detailed strategic plans, both in terms of management time and in resources 566 + Strategic plans are often inflexible and are not adaptive to sudden changes in the marketplace. + Rigid strategic plans limit an organization’ ability to be innovative. ‘As English statesman Sir Winston Churchill (1874-1965) said, “However beautiful the strategy, you should occasionally look at the results ny Ce eee ere cee teen pace the strategic options for ...) need Se naan oe re are we now? ee eae ae ee eS un rca Cee a eee nee ee eR cee Re cces ue fegic analysis, Soe The challenge facing entrepreneurs and managers in the modern business environment is much greater than it has been in the past. With trends such as e-commerce, flexible ‘working practices and intense competition from emerging markets, entrepreneurs and managers have less control that ver. Strategies that worked in the past may not necessarily ‘work today and new problems may demand new strategies and solutions