Discuss the importance of contingency planning if SA is to continue to be successful.

Mark scheme

Marking points from the official mark scheme (Feb/Mar 2017). The mark or mark type is shown in brackets.

1. [K] Contingency planning – preparations made by business for future unexpected events that may adversely affect the running and reputation of the business. Contingency plans include procedures to follow when such an event occurs, such as dealing with the media and ‘disaster recovery’ plans.
2. [K] Corporate planning is the overview of company aims, objectives and strategies, in all areas for the next few years. Contingency planning is part of corporate planning.
3. [APP] In this case, contingency planning (CP) may be used by SA to cope with disruptions such as a complete failure of the website, fuel shortage, service disruptions, such as delays, caused by factors such as weather or major incidents, such as plane technical problems, crashes or terrorism.
4. [APP] Reference to contingency planning issues if Option B is chosen, e.g. building delays.
5. [APP] The airline industry is vulnerable to many external factors (use of local examples allowable here).
6. [AN] CP is important because of reassurance to staff (and customers?) that plans are in place and if, for instance, customers feel that problems such as major delays are dealt with efficiently and sympathetically, this will enhance reputation.
7. [AN] CP can be costly, and requires high levels of skills and knowledge, both in the process and in terms of preparations, such as having back-up systems and even equipment.
8. [EVAL] But by the nature of CP, it is used to prepare for the unexpected, cannot prepare for all eventualities (again local examples)
9. [EVAL] Importance of CP may depend on how likely these events are to occur, quite likely in this industry. A major incident would be disastrous and may cause loss of life.
10. [EVAL] However, other parts of the corporate plan are also very important for the future of the airline.
11. [EVAL] Maybe possible to prepare more detailed CP for more likely problems, such as passengers stranded by aircraft breakdown.
12. [EVAL] Cost of CP needs to be balanced against potential damaging consequences of not doing it.
13. [EVAL] Arguments must be two sided and final judgement well supported.