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LDL Paper 3

Libros De Libertad (LDL) is a subscription-based book-sharing service that connects members to share books across outdoor library stations in Spain and Europe, with a focus on community engagement and funding literacy programs. The document outlines exam instructions for a business management paper, including resources like an interview with the CEO, financial information for franchisees, and feedback from a franchisee in Brussels. Key challenges include managing subscriber behavior, ensuring book quality, and addressing staffing needs as the business expands.

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Paula Zalagaityte
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516 views5 pages

LDL Paper 3

Libros De Libertad (LDL) is a subscription-based book-sharing service that connects members to share books across outdoor library stations in Spain and Europe, with a focus on community engagement and funding literacy programs. The document outlines exam instructions for a business management paper, including resources like an interview with the CEO, financial information for franchisees, and feedback from a franchisee in Brussels. Key challenges include managing subscriber behavior, ensuring book quality, and addressing staffing needs as the business expands.

Uploaded by

Paula Zalagaityte
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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InThinking IB Business Management

Paper 3 Exam Practice Question (HL only) – Libros De Libertad


https://www.thinkib.net/businessmanagement

Business Management

Higher level

Paper 3

Time: 1 hour and 15 minutes

Instructions to candidates

• Do not open this examination paper until instructed to do so.

• Read the case study carefully.

• Answer all questions.

• A calculator is permitted for this examination paper.

• The maximum mark for this examination paper is [25 marks].

© InThinking (created in collaboration with Sylvaine Plan)


InThinking IB Business Management
Paper 3 Exam Practice Question (HL only) – Libros De Libertad
https://www.thinkib.net/businessmanagement

Read the resources and answer all the questions that follow.

Resource 1 – Excerpts from interview with José Pablo, CEO of LDL, featured in Franchise
Power, a leading business magazine specializing in franchising

About Libros De Libertad (LDL)


At LDL, our motto is: “We stand as a library open to
the world with freedom – our books are free to move
and be shared.” LDL connects subscribers to share
books across various genres. Think of us as an Airbnb
for books – we don’t own the books; our members
share and exchange them. Our vibrant community
loves discovering unique books that aren’t always
available in traditional bookstores.

How it works
To get started, members simply register on our
website (www.ldl.com) and select a subscription plan
(€9 per month or €84 per year). Upon registration,
members receive a badge that provides access to our
outdoor library stations for borrowing and returning
books, as well as tracking exchanges between
members. Subscribers can use the LDL website to
Image 1. One outdoor library station of Libros De
Libertad (source: “Outside library with glass door”
track specific books and get notifications when they’re
prompt, Canva, version 1, OpenAI, 29 Oct. 2024, available at any of our 350+ stations in Spain or 50
https://www.canva.com/projects franchise locations across Europe.

Each outdoor library station is managed by a small team responsible for inventory control and
monitoring activity. Our team also includes a web developer who oversees platform management
and badge creation for access to the libraries. The core strength of LDL lies in our engaged
community of readers, which is central to our business.

LDL’s social purpose


We dedicate all of our profits to fund literacy programmes for underprivileged children, as well as
training and educational initiatives for teachers. At LDL, we are committed to strengthening our
community impact.

Upcoming plans
As LDL’s community continues to grow, we’re expanding our focus to include retired individuals.
We plan to host author conferences for this group, called the “Libertad Books Tour,” which will
travel across Spain. Additionally, we are focused on expanding our franchise network and revenue
streams. For more information, visit our franchise page: www.ldl/franchise.sp.

© InThinking (created in collaboration with Sylvaine Plan)


InThinking IB Business Management
Paper 3 Exam Practice Question (HL only) – Libros De Libertad
https://www.thinkib.net/businessmanagement

Resource 2 – Financial information from LDL’s “Become a Franchisee” website page

• Franchise set-up fee: €10,000


• Outdoor library installation cost: €18,000
• Monthly royalties: Just 5% of total sales (based on new subscribers enrolled each month)
• Free workshops and training programmes for your employees
• Annual maintenance cost for the outdoor library: €8,000

Join our expanding network and bring this innovative library concept to your local area!

Resource 3 – Email sent from one of LDL’s franchisees to José Pablo

 From: [email protected]
To: josé[email protected]
Date: Monday 5th September
Subject: Brussels Franchise: sharing feedback

Dear José,

We are pleased to announce that our outdoor library station in Brussels has reached an impressive
12,000 subscribers. However, we’ve identified a few challenges that need addressing.

It has come to our attention that some members are sharing their badges with family or friends. While
this aligns with our motto of freedom, it raises the questions about where to draw the line. How can
we ensure fairness while upholding our values? Additionally, some books are being returned in
unacceptable condition, and this issue must be addressed.

Another concern is that members are borrowing too many books at once, with all subscribers taking
at least three simultaneously, leaving our shelves worryingly empty. Late returns further impact book
availability, a problem that needs to be addressed.

Lastly, I’d like to alert you to our concern about the annual maintenance cost. Although our subscriber
base has grown, our fixed costs, especially rent, have increased significantly due to our prime
downtown Brussels location.

I share this feedback in the spirit of transparency and collaboration and look forward to discussing
solutions together.

Kind regards

George Ferdinand
Manager, LDL Brussels (franchisee)

© InThinking (created in collaboration with Sylvaine Plan)


InThinking IB Business Management
Paper 3 Exam Practice Question (HL only) – Libros De Libertad
https://www.thinkib.net/businessmanagement

Resource 4 – LDL data mining visuals, dated by the end of August

Resource 5 – Email from José Pablo to his assistant to prepare for the annual strategic
meeting with LDL’s key shareholders

Dear Juan

Please note the following discussion points for the scheduled meeting on 7th September with LDL’s
board members and key shareholders

1. Feedback from franchisees – Forty franchisees have raised concerns about subscribers
returning books in poor condition or borrowing excessively. We should consider quality control
measures. Also, please review George Ferdinand’s feedback, which I forwarded yesterday.
2. Staffing at LDL libraries – Libraries with over 30,000 subscribers are reportedly understaffed,
with only two employees handling the workload. This concern, raised by 22 franchisees,
requires discussion on hiring additional staff to enhance efficiency and service quality.
3. Subscriber retention (60+ age group) – Data insights indicate the need for a targeted strategy
to retain subscribers aged 60 and above. Launching the “Libertad Books Tour” could be an
effective initiative to engage this segment.
4. LDL smartphone app – Consider launching a mobile app to enhance subscriber experience,
with features like notifications when wish-list books are available at nearby libraries. This would
boost engagement and increase demand.
5. Expansion into the USA – Discuss a potential strategic alliance with "Books Craziness" to enter
the US market. However, further market research, including online focus groups, is essential.

Thank you for your support with this.

José

© InThinking (created in collaboration with Sylvaine Plan)


InThinking IB Business Management
Paper 3 Exam Practice Question (HL only) – Libros De Libertad
https://www.thinkib.net/businessmanagement

Questions

Answer all questions

1. Using an appropriate business management theory, describe the need for social connection
and community engagement that Libros De Libertad (LDL) meets. [2 marks]

2. Explain two possible challenges facing LDL. [6 marks]

3. Using all the resources provided and your knowledge of business management tools and
theories, recommend a possible plan of action for LDL over the next five years. [17 marks]

© InThinking (created in collaboration with Sylvaine Plan)

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