Assignment: Wigging out

IB BUSINESS & MGMT HL A 2024
2024-08-16T18:51:14Z

Due: Nov 3, 2024 by 11:59pm

Exam Practice Question - Venturing in the beauty industry

According to Forbes, the the global hair wigs and extensions market size has been valued at $5.8 billion in 2021 and it expected to skyrocket to reach $13.3 billion by 2026. The readily available supply of high-quality wigs and the growth in average disposable incomes, as well as the increase in hair loss rates and the popularity of personal grooming and beauty products, have driven growth in the industry.

The growth prospects for the industry has attracted a large number of business angels to invest in the market for the long-term. According to data from the Centre for Venture Research at the University of New Hampshire, the number of female angel investors has increased nearly eightfold, from over 11,000 to almost 94,000 in 2019.

Source: adapted from Forbes

(a) | Define the term market size. | [2 marks]
(b) | Calculate the forecasted percentage increase in the value of the global hair wigs market. | [2 marks]
(c) | Define the term business angels. | [2 marks]
(d) | Explain one reason for and one reason against the use business angels to generate long-term investment in the beauty industry. | [4 marks]

Exam Practice Question - Venturing in the beauty industry

According to Forbes, the the global hair wigs and extensions market size has been valued at $5.8 billion in 2021 and it expected to skyrocket to reach $13.3 billion by 2026. The readily available supply of high-quality wigs and the growth in average disposable incomes, as well as the increase in hair loss rates and the popularity of personal grooming and beauty products, have driven growth in the industry.

The growth prospects for the industry has attracted a large number of business angels to invest in the market for the long-term. According to data from the Centre for Venture Research at the University of New Hampshire, the number of female angel investors has increased nearly eightfold, from over 11,000 to almost 94,000 in 2019.

Source: adapted from Forbes

(a) | Define the term market size. | [2 marks]
(b) | Calculate the forecasted percentage increase in the value of the global hair wigs market. | [2 marks]
(c) | Define the term business angels. | [2 marks]
(d) | Explain one reason for and one reason against the use business angels to generate long-term investment in the beauty industry. | [4 marks]