Business management · 2009 · May · Paper 2 · HL · Question paper

M09/3/BUSMT/HP2/ENG/TZ0/XX BUSINESS AND MANAGEMENT HIGHER LEVEL PAPER 2 Friday 22 May 2009 (morning) INSTr Uc TIo NS To ca Nd Ida TES  d o not open this examination paper until instructed to do so.  Section a: answer one question.  Section B: answer two questions. 2 hours 15 minutes 2209-5012 8 pages © International Baccalaureate organization 2009 22095012 M09/3/BUSMT/HP2/ENG/TZ0/XX 2209-5012 – 2 – SECTION A Answer one question from this section. 1. Altair Incorporated Altair Incorporated has been operating in the pharmaceutical industry for over 50 years . Over the past 5 years, it has been conducting research to try and develop a vaccine to minimize the effects of malaria. No cure currently exists. Stakeholder anticipation has been considerable. Recent media reports suggest that Altair Incorporated is very close to manufacturing a prototype, called Zyra . Furthermore, the media speculation has revealed that Altair Incorporated is considering locating a new production facility in either one of two countries located in sub-Saharan Africa where malaria is most prevalent. If successfully patented, Zyra will guarantee Altair Incorporated substantial profits . Two potential countries have been identified as potential sites and have been code named Alpha and Bravo . The construction of each facility and product launch is expected to take one year, the patent will last for 5 years. The cost of building the facilities in 2009 is as follows: $m Alpha 240 Bravo 180 The estimated net cash inflow ($m) from Zyra is as follows: 2010 2011 2012 2013 2014 80 80 70 60 50 Alpha is a prosperous nation with a stable government, reliable infrastructure and a strong economy. Labour costs are higher than in Bravo and the