Evaluate the significance of contingency planning for JGS as it prepares to implement its future strategies.

Mark scheme

Marking points from the official mark scheme (May/June 2020). The mark or mark type is shown in brackets.

1. [3] Good understanding shown (Knowledge)
2. [3] Good application to JGS (Application)
3. [4] Good use of theory to explain points made (Analysis)
4. [10] Good judgment shown throughout with well supported conclusion/recommendation, focused on JGS (Evaluation)
5. Knowledge:
6. Explanation of contingency planning process possibly including examples
7. Place of contingency planning in strategic management
8. Application:
9. Reference to JGS plans for the future including expansion of mountain walks, changes to structure, Options 1 and 2
10. Applicable activities – guides, village accommodation, internet marketing
11. Market conditions – CSR considerations (government enquiry), possible rise of competition, income changes in client countries
12. Analysis:
13. Discussion of current activities and their risks
14. Possible changes and the risks involved in them
15. Linking process of contingency planning to present and to possible futures for JGS
16. Possible effects of successful contingency planning and/or implications of not carrying it out
17. Analysis (advantages):
18. Facilitates quick response
19. Enables effective PR if needed
20. Provides confidence for managers and stakeholders
21. Analysis (disadvantages):
22. Expensive in resources and time that may be actually used
23. Needs constant updating/reviewing and takes focus away from core activities
24. Having a contingency plan might mean a problem is thought to be covered so it is no longer considered
25. Relation of contingency planning to review and process of strategic management
26. Evaluation:
27. Conclusion on how essential contingency planning is
28. Requires objectives and to be set in the process of strategic management
29. Success of contingency planning only as good as the information it is based on. This may be unreliable or inaccurate.
30. JGS faces change, whatever the outcome of decisions on expansion, structure or the 2 Options so it is essential to be prepared for results of whatever change happens
31. Small organisation run by expert owners so may not need formal process of contingency planning
32. Supported conclusion on role of contingency planning in the process of strategic management
33. Comparison on importance of contingency planning compared to other elements of strategic management