Business management · 2012 · Paper 1 · HLSL · Case study

M&N12/3/BUSMT/BP1/ENG/TZ0/XX/CS BUSINESS AND MANAGEMENT CASE STUDY: UNITED WORLD PEACE MISSION TO LOYKA For use in May and November 2012 INSTr UCTI o NS To Ca Nd Ida TES • Case study booklet required for Higher Level Paper 1 and Standard Level Paper 1 Business and Management examinations. 2212-5001 ; 8812-5001 9 pages © International Baccalaureate organization 2011 M&N12/3/BUSMT/BP1/ENG/TZ0/XX/CS 2212-5001 ; 8812-5001 – 2 – United World Peace Mission to Loyka 5 10 15 20 25 30 The first years Loyka is a small country with an economy that is 45 % primary sector, 15 % secondary sector, and 40 % tertiary sector. From 2006 to 2008, Loyka was torn by civil war. When the fighting ceased, a new coalition government was established, but its hold on the situation was fragile. In 2009, to prevent the eruption of further violence, the United World Peace (UWP) sent 4000 peacekeepers to Loyka. The UWP Mission to Loyka had ethical objectives: its troops (nicknamed “the Olive Hats” because of their olive coloured helmets) were expected to create stability, fulfilling the UWP Mission’s aim to maintain order, peace and security. The UWP Mission to Loyka was based in Beral, the capital of the country. The autocratic General Ron Meiri was appointed by the UWP as Commander. The organizational structure of the UWP Mission was tall and centralized, with several levels of hierarchy and a narrow span of control (Appendix 1). This structure fitted well with the organizational culture of the military. This organization was not flexible, but it ensured that orders were clearly understood and always followed. As a consequence the security of the UWP troops was maintained. In the first years, the UWP Mission to Loyka experienced some successes but also some failures. The presence of “the Olive Hats” gave a sense of stability and international support. It also benefited the local business community: the provisions for the troops were purchased locally, the soldiers spent a significant proportion of their pay in the local economy and also helped repair roads and bridges that had been damaged during the civil war. As a result of these improvements in infrastructure, local