Discuss the importance to DLR's future profitability of business planning.

Mark scheme

Marking points from the official mark scheme (Oct/Nov 2018). The mark or mark type is shown in brackets.

1. [Examiner note] If no link made between planning and profitability then limit to L1 AN & EVAL
2. [Knowledge] Knowledge of profit / profitability
3. [Knowledge] A corporate plan is a detailed report on a company's future long-term aims/objectives and the strategies it will follow to achieve them.
4. [Knowledge] Gives direction to the business. The plan provides DLR directors with a clear focus for what the company should be trying to achieve in the medium term.
5. [Knowledge] Targets derived from business plan may help motivate staff. It provides a sense of purpose.
6. [Knowledge] Enables planning at different levels of the business and ensures all staff are working towards the same goals
7. [Knowledge] Acts as a means for control and review. Actual outcomes can be compared with the objectives set and the performance of DLR can be assessed
8. [Knowledge] Helps ensure that resources are used effectively and that all departments are working together.
9. [Application] References to issues in case linked to planning
10. [Application] Financial difficulties faced by DLR 2014 onwards
11. [Application] Internal weaknesses identified in strategic review e.g. inadequate controls on investment
12. [Application] Planning role in strategic decisions taken in 2017
13. [Application] Role of planning in achieving gains in shareholder value
14. [Application] Planning role in dealing with external influences
15. [Application] Market share objective of 10%
16. [Analysis] Analysis of potential link between having clear corporate plans and profit
17. [Analysis] Significance of contingency planning to deal with the unexpected changes in the market minimises the costs of potential disasters.
18. [Analysis] Planning can help ensure that support of key stakeholders can be gained thus improving staff retention and reducing recruitment costs and therefore profit.
19. [Analysis] Planning can help ensure that all departments are working toward the same goal and therefore reduce the problems of different departments having different aims. Reduces confusion, communication problems, etc.
20. [Evaluation] Needs to be flexible and adaptable to meet new situations.
21. [Evaluation] The nature of a dynamic business environment and need therefore to adjust plans accordingly. Holiday park industry is competitive. Therefore, corporate plans will need to be updated frequently
22. [Evaluation] The planning process itself is useful. It encourages directors and managers to consider the current situation of the firm and to set objectives accordingly.
23. [Evaluation] Best-laid plans can be made obsolete by unexpected internal or external change