IB Business Paper 1 November 2026 Lemon Magic Breakdown TWO

Hi everyone, in this video I'm breaking down the second and third paragraphs of the Lemon Magic case study step-by-step. I'll walk you through the key business terms you need to know, look at possible questions that could come up, and flag some things that you should be thinking about as you prepare. Let's get down to

business. If you haven't already watched the breakdown of the first paragraph, go back and watch that video now. In the second paragraph, we see Yiannos and Athena, who are two internal stakeholders as they are the owners of the business. We don't know any other stakeholders right now, but the IB is sure to add in some new people to the

story. I would recommend reviewing the different options for internal and external stakeholders. For example, customers would be external stakeholders. Next, LM is using discarded lemon peels. I think it is important to ask where these peels are coming from and how much supply do they have. They are a growing business, which we'll see in the next

paragraph, so will the supply of the peels meet the demand? How could they possibly get more lemon peels as they continue to grow? Places that they might be getting these peels from are maybe a juice factory, a bakery, or even their university campus could be an option. Finally, we learn a bit about their

target market. They have a low price range, which is attractive to students and possibly lower income individuals. This is just one target market and it is important to see that they might expand in the future to wealthy or eco-friendly customers. The Ansoff matrix is a good tool and possible question here to think