Evaluate whether successful implementation of a new strategy requires NH to change its organisational structure.

Mark scheme

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

1. Knowledge: Explanation of corporate strategy – strategy to achieve medium to long term objectives of the business. Impacts all areas of the business.
2. Knowledge: Explanation of Chandler's assertion that all aspects of an organisation's structure, from the creation of divisions and departments to the designation of reporting relationships, should be made while keeping the organisation's strategic intent in mind.
3. Knowledge: Discussion of how strategy determines competitive advantage
4. Knowledge: Reference to structure by area, function, product lines or market segments
5. Application: Current corporate strategy for NH. (Is there one?)
6. Application: Types of hotel and their location
7. Application: Possible expansion to country Q
8. Application: Possible takeover of EatBest
9. Application: Issues of customer service, occupancy, HRM
10. Application: New marketing plan
11. Application: Current centralised structure, control culture
12. Analysis: Discussion of possible strategic plans taking account of the issues
13. Analysis: Linking strategic plans to reorganised structures e.g. reorganise by function, product, customers or matrix not size, (three hotel types in X, overseas division, restaurant division) and applicability to NH
14. Analysis: Delayering and its effects
15. Analysis: Advantages and disadvantages of different structures
16. Analysis: Linking plans to issues and how reorganisation might impact on them
17. Analysis: Possible outcomes if no reorganisation takes place
18. Analysis: Chandler stresses importance of centralised decision making – is this working for NH, if not, why not?
19. Analysis: Advantages and disadvantages of formal or informal structures within overall structure
20. Evaluation: Recommendation on necessity of restructuring based on justified reasoning
21. Evaluation: Recommendation of new/existing structure
22. Evaluation: Assessment of Chandler's assertion
23. Evaluation: Possible costs of change – are they worth it?
24. Evaluation: Discussion of probability that reorganising will achieve objectives
25. Evaluation: Recommend wait to take a decision once possibilities are agreed (expansion to Q, takeover)