IB Business Management SLTopic 8 — The Pre-Released StatementPaper 1Toolkit~11 min read
Choosing the Right Toolkit Tool
Knowing five tools is not the skill. Picking the right one in ten seconds is. Myt is a useful company to practise on because its wide portfolio makes one tool — the BCG matrix — far more useful here than it was in the previous case study.
What you need to know
SWOT covers inside and outside. STEEPLE is outside only.
Ansoff answers “where should we grow?” BCG answers “what should we do with what we already own?”
The circular business model is the tool for packaging, waste and sustainability questions.
BCG fits Myt well because it has a wide portfolio: over 30 drinks, plus coffee and water.
You are rarely told which tool to use. The question wording is the clue.
Naming the tool in your answer earns analysis marks. Drawing it does not.
Inside, outside, or both
Most wrong tool choices come from reaching for STEEPLE when the question was really about a decision Myt controls.
The BCG matrix for Myt
BCG sorts a company’s products by two things: how fast their market is growing, and how big a share of it the company holds. It tells you where to put money and where to stop.
The interesting tension: the drinks Myt is under pressure to reformulate are the ones paying for its expansion.
The BCG quadrants are not a permanent label. A question mark can become a star, a star becomes a cash cow, and a cash cow eventually becomes a dog. Saying that out loud in an answer shows you understand the tool rather than just the boxes.
Which tool for which question
If the question says something like…
Reach for
Because
“…Myt’s competitive position” or “strengths and weaknesses”
SWOT
It is the only tool that puts internal and external factors side by side.
“…external factors affecting Myt” or “changes in the market”
STEEPLE
Everything in STEEPLE is outside the firm’s control, which is exactly what is being asked.
“…should Myt enter the healthy snacks market” or “growth strategy”
Ansoff
Ansoff sorts growth options by product and market, and ranks them by risk.
“…its product portfolio” or “which products to invest in”
BCG
BCG is built for comparing products a firm already owns.
“…packaging, waste or sustainability”
Circular business model
It gives you the vocabulary of keeping materials in use rather than disposing of them.
“…whether the investment is worthwhile” with figures given
Decision tree
Numbers plus probabilities means a quantitative comparison is expected.
Using the circular model on a drinks company
For Myt this tool is about packaging. A linear model makes a bottle, sells it, and the bottle becomes waste. A circular model keeps the material moving: recyclable or biodegradable packaging, refill schemes, and deposit-return systems where customers get money back for returning bottles.
Two honest limits are worth knowing. Biodegradable materials often need particular conditions to break down properly, so recycling still matters. And bottled water attracts a second criticism entirely — how much groundwater is taken and from where. Owning Honest Water exposes Myt to that.
Pressure groups are the link. Environmental campaigners target drinks firms specifically over plastic. If Myt announces green plans and does not deliver, the accusation is greenwashing. That single sentence works as a counter-argument in almost any CSR question about this case.
WORKED EXAMPLE
Explain why Honest Water could be classified as a star in the BCG matrix. [2]
Step 1: the point
A star is a product with a high share of a market that is itself growing quickly [1]
Step 2: apply itBottled water demand is rising as consumers look for healthier drinks, and Honest Water gives Myt an established foothold in that market, so it fits the high growth and high share quadrant [1]2 marksStars usually need investment rather than producing spare cash. Saying so would strengthen a longer answer.
WORKED EXAMPLE
Explain one advantage and one disadvantage for Myt of divesting its high-sugar drinks. [4]
Advantage: the point
Removing declining, heavily criticised products frees up production capacity and management attention [1]
Advantage: the applicationMyt could redirect that capacity towards lower-sugar drinks or the healthy snacks market, and reduce the criticism it faces from health pressure groups [1]Disadvantage: the point
Products classified as dogs may still be generating revenue and have loyal customers [1]
Disadvantage: the applicationMyt’s older fizzy drinks help fund its expansion into coffee and water, so cutting them too quickly could weaken the cash flow that the rest of the strategy depends on [1]4 marksUsing BCG language and then challenging the classification is exactly what a strong candidate does.
Exam tip
Name the tool in the first sentence of the paragraph where you use it.
One tool per question is usually enough. Two well used beats four mentioned.
Use BCG when a question names products. That is the signal.
Remember cash cows fund question marks. It is the most useful single idea in BCG.
For sustainability, say “circular business model” rather than just “recycling”.
Challenge your own classification. “This could be argued either way, because…” is an evaluation mark.
Common mix-up
Confusing market growth with market share. Growth is the market; share is Myt’s slice of it.
Assuming dogs should always be dropped. They may still generate cash and hold loyal customers.
Using Ansoff for existing products. Ansoff is about where to grow next; BCG is about what you already have.
Putting competitors into a SWOT weakness. Rivals are external, so they are threats.
Marching through all seven STEEPLE letters. Two or three, properly developed.
Drawing a matrix instead of arguing. The grid is your plan, not your answer.
Up next: Background on the Industry — the three markets Myt now competes in, and how big each one really is.
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