T.2 Ansoff matrix questions for IB Business Management

Te Ara E-Bikes

[1] Te Ara E-Bikes (TAE) is a sole trader business in Queenstown, New Zealand, owned by Huia Rangihuna. Huia opened TAE in 2019 with 30 electric bikes (e-bikes) after working for ten years as a mountain-bike guide. TAE’s customers are mainly international tourists who ride the lakeside and wine-region trails between October and April.

[2] TAE has four revenue streams. Most of its revenue comes from e-bike hire at NZ$95 per day. It also runs guided wine-trail tours, repairs and services bikes for local riders, and sells its used e-bikes at the end of each season. Huia leases a shop on the waterfront, insures the fleet and employs one full-time mechanic, Callum, on an annual salary. Tour guides are paid NZ$140 for each tour they lead, and the electricity used to charge the batteries rises with the number of hires.

[3] Between May and September, the winter ski season, TAE’s revenue falls by about 70 %. The shop lease, insurance and Callum’s salary must still be paid, and in 2025 TAE made a loss in four of the five winter months. Huia has used her personal savings to pay suppliers twice.

[4] Huia is considering a new revenue stream: hiring out ski and snowboard equipment from the shop during winter. Queenstown has several large ski-hire businesses close to the ski fields, but none on the waterfront. Callum says he could learn to service skis, and the shop has enough space. The equipment would cost NZ$85 000, which Huia would need to borrow. Her accountant, Annie Zhou, thinks Huia should instead offer winter discounts to local riders and keep the business “doing what it does best”.

Ganyesa Catering (Pty) Ltd (GC)

GC is a South African company that cooks and delivers meals to schools and hospitals in North West Province. Its contracts are renewed every three years and profit margins are low. The directors want to grow and are considering two options:

• Option A: provide the same meals to mining camps across the border in Botswana. This would cost R2.4 million.

• Option B: launch a range of frozen ready meals for South African supermarkets. This would cost R1.5 million.

GC could also choose to do neither. The forecast outcomes are shown in Table 1.

Table 1: Forecast outcomes for GC’s options (total returns over three years, R million)

Beco Express (BX)

Read the resources and answer the questions that follow.

Beco Express (BX) is a social enterprise in São Paulo, Brazil, founded in 2021 by Tainá Ribeiro and Diego Alves, who grew up in one of the city’s largest favelas*. Many national courier companies refuse to deliver into favelas, so residents’ online orders are often returned or left at distant collection points. BX collects parcels from courier depots and delivers them through the narrow alleys (becos) on bicycles and motorbikes. It employs 110 young people from the favela as riders and pays them per parcel. BX is a private limited company and reinvests its profit; its mission is “every address counts”.

* favela: a low-income, densely built neighbourhood, often on a hillside, in a Brazilian city.

Image: a young rider in an orange BX jacket carrying a large parcel up a steep, narrow stairway between brightly painted houses. Text on the van parked below: “Beco Express – every address counts”.

Resource 1 – News article from *Periferia Notícias*

“Couriers don’t come here”: the favela start-up that does

More than 1.5 million people in São Paulo live in favelas, and many have stopped shopping online because parcels never arrive. Courier companies say the alleys are slow and unsafe. BX, which says its riders “know every door”, has grown quickly, but critics say it relies on young people paid per parcel with no employment contract.

Table 1: Deliveries to favela addresses in São Paulo, 2025

Resource 2 – Social media posts from Kauã, a BX rider

Two years with BX. I know every beco from the top of the hill to the bottom. Grandmothers wave when they see the orange jacket. This is the first job where I feel people respect me. [1/2]

But I get BRL 3.10 a parcel, I pay for my own fuel, and when I crashed my motorbike in March I earned nothing for three weeks. If BX wants to grow, it should grow with us, not on our backs. [2/2]

Resource 3 – Internal email from Tainá Ribeiro to Diego Alves

From: Tainá Ribeiro, Co-founder

To: Diego Alves, Co-founder

Subject: Zonamall’s offer

Zonamall, the online marketplace (a US-owned multinational) that gives us 64 % of our parcels, has offered to buy 60 % of BX for BRL 18 million. It would roll our model out to 40 favelas in Rio de Janeiro, Salvador and Recife within two years. We would keep the BX brand and run operations for three years, but we could no longer deliver for other online shops.

The other options are slower. The development bank would lend us BRL 6 million at 9 % a year to open our own hubs. A community leader in Rio has also asked to run BX as a social franchise (see Resource 5).

If we say no, Zonamall may build its own favela delivery service and stop using us. I don’t want to sell our mission – but I don’t want to lose 64 % of our work either.

CONFIDENTIAL: this email and any attachments are intended only for the named recipients.

Resource 4 – BX operating data

A new hub in another city is expected to have fixed costs of BRL 120 000 a month.

Resource 5 – Message from Marcos Lima, a community leader in Rio de Janeiro

“We want BX in our community, run by our own young people. I can find a warehouse and 50 riders. I would pay BX a franchise fee of BRL 40 000 and a royalty of 5 % of revenue, and follow your training and safety rules. Expect about 60 000 parcels a month after the first year.”

Resource 6 – Survey of BX riders (96 replies)

Siriwat Group

[1] Siriwat Group is a family-owned private limited company in Bangkok, Thailand. It makes plastic packaging for food manufacturers and employs 1 800 people in three factories. The packaging business is profitable, but demand for single-use plastic is expected to fall as Thailand introduces stricter environmental laws.

[2] The group’s chairman, Anan Siriwat, has agreed to acquire Phuket Palms, a chain of six beach resort hotels. He believes tourism will grow strongly over the next decade and wants to spread the group’s risk. His daughter Nok, the group’s operations director, will manage the hotels, although she has no experience of tourism.

[3] Packaging customers have asked whether Siriwat will continue to invest in recyclable packaging, and some factory managers worry that profits from packaging will be used to modernise the hotels.

Panadería Amasado SpA (PA)

PA is a Chilean bakery company with nine shops in Santiago. In 2024 it sold only traditional bread and pastries in Santiago. In 2025 PA grew in three new ways: it opened two shops in Valparaíso, launched a gluten-free range in its Santiago shops, and started a coffee-and-breakfast subscription service delivered to offices.

Table 1: PA’s sales revenue by activity (CLP million)

Dugub Délice SARL (DD)

Read the resources and answer the questions that follow.

Dugub Délice SARL (DD) is a social enterprise in Thiès, Senegal, founded in 2014 by Aïssatou Ndiaye. Dugub means millet in Wolof. DD buys millet from 900 smallholder farmers, paying 10 % above the market price, and its 40 women employees clean, grind, steam and dry it into traditional products – thiéré (millet couscous), arraw and sankhal – sold in hygienic 1 kg packs in shops and supermarkets. Preparing these foods from raw grain takes hours, so DD saves families time. Its mission is “to keep Senegal’s grains on Senegal’s tables”.

Image: a row of colourful 1 kg packs of millet couscous with a pattern of woven baskets, next to a steaming bowl of thiéré with a vegetable sauce. Label: “Dugub Délice – le goût de chez nous” (the taste of home).

Resource 1 – News article from *Dakar Économie Hebdo*

Bread or millet? The battle for Senegal’s plate

Senegal imports almost all of its wheat. Young people in Dakar increasingly eat baguettes for breakfast and pasta at lunch, while the traditional millet dishes of their grandparents take too long to prepare. After world wheat prices rose sharply, the government launched a “Consume Local” campaign and is considering a rule that bakeries must mix 15 % local cereal flour into bread.

Table 1: Market for packaged local-cereal products in Senegal

XOF = West African CFA francs. USD 1 ≈ XOF 600.

Resource 2 – Social media posts from Fatou, a 26-year-old office worker in Dakar

My grandmother makes the best thiéré in the world, but it takes her half a day. I tried Dugub Délice and it was ready in 15 minutes – almost as good as hers! Proud to eat local. [1/2]

But why is it only sold in big 1 kg bags with old-fashioned packaging? I live alone. Give me small packs, quick recipes, maybe a millet breakfast cereal – then I’ll stop buying croissants. #ConsommonsLocal [2/2]

Resource 3 – Internal email from Aïssatou Ndiaye to DD’s management team

From: Aïssatou Ndiaye, Founder and Managing Director

To: Management team

Subject: Two ways to grow

Boulangeries Sunugal, a chain of 60 bakeries, wants to buy 1 200 tonnes a year of fine millet flour to blend into bread if the 15 % rule is introduced. This would more than double our volume and make us a major player in local flour. But the margin is small and our mill can handle only 1 500 tonnes a year in total; a new mill would cost XOF 150 million.

The alternative is to grow our own consumer brands: smaller packs, ready-to-cook flavoured couscous and a millet breakfast cereal for young city people. That would need market research and new marketing.

We have always made the products we know how to make. Perhaps it is time to start with what customers want.

CONFIDENTIAL: this email and any attachments are intended only for the named recipients.

Resource 4 – DD’s product and cost information

Resource 5 – Market research: survey of 400 consumers aged 18–35 in Dakar

Resource 6 – Interview with Moussa Diouf, president of a farmers’ group supplying DD

“DD pays us more and pays on time – our children are in school because of it. If DD sells to the bakeries, we can grow more millet; we have land. But the bakeries will push the price down every year. I would rather see our millet on supermarket shelves with our story on the pack than hidden inside a baguette.”