Assume QH has decided to manufacture and sell steel framed houses. Evaluate the importance of developing a strategy to manage this change.

Mark scheme

Marking points from the official mark scheme (Oct/Nov 2019). The mark or mark type is shown in brackets.

1. [0] Examiners note: There are two possible approaches to answering this question, both of which are equally rewardable: Approach 1 - strategy for manufacturing and selling new product which is steel house (mark scheme suggests points for this approach); Approach 2 - importance of managing the change in the QH organisation, given this diversification
2. [0] Examiners note: Approach 2 answers might consider the role of culture in an organisation and/or the techniques for making change happen successfully, e.g. communication of changes, overcoming resistance, involving employees, Kotter's 8 steps, getting key individuals on board
3. [1] Knowledge: Strategic management is using corporate strategy and tactics, encompassing setting objectives, strategic analysis, choice and implementation to achieve the objectives
4. [1] Knowledge: Coordinated strategies for functional areas
5. [1] Knowledge: Strategy can determine a business' competitive advantage and how successful it is
6. [1] Knowledge: Chandlers' assertion that strategy determines structure may be relevant
7. [1] Application: New product/addition to product range
8. [1] Application: Price and characteristics of steel houses
9. [1] Application: Need for more equipment, employees and premises
10. [1] Application: Existing product portfolio
11. [1] Application: Reference to data in Appendix B
12. [1] Analysis: Contrast between a strategic approach and no strategy
13. [1] Analysis: Need for integration of functional area strategies - examples of result of integration and/or non-integration
14. [1] Analysis: Reasons for each stage of preparing a strategy including review and contingency
15. [1] Analysis: Strategy could help decide how to place the new project in company structure as a separate department or not?
16. [1] Evaluation: Strategic approach provides a timetable for each necessary process and maximises chances of success
17. [1] Evaluation: Difficult to see how the changes needed to enter the new market could happen in a coordinated way if there was no strategy
18. [1] Evaluation: Avoids conflicts between managers
19. [1] Evaluation: Major new venture requiring significant investment requires thorough planning
20. [1] Evaluation: Strategy enables communication between functional areas and existing product areas to maximise efficiency
21. [1] Evaluation: Requires objectives to be set – very important
22. [1] Evaluation: Supported conclusion on role of strategic management
23. [1] Evaluation: Relative importance of constituent sections of strategic management
24. [1] Evaluation: Necessity of review/updating strategy
25. [1] Evaluation: Importance of accurate reliable data/information