Evaluate the importance of core competencies as a framework for business strategy when NH carries out strategic analysis.

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 core competencies (Prahalad and Hamel) and their use
2. Knowledge: Explanation of strategic analysis and its techniques: SWOT; PEST; Boston Matrix; Porter's Five Forces
3. Knowledge: Place of strategic analysis in strategic management/planning
4. Application: NH's perceived competencies: customer service, professional standards, clear leadership
5. Application: Possible NH core competencies: e.g. providing hospitality, giving customers a good time, enabling visits to meet customer's needs/wants
6. Application: Types of hotel and their location
7. Application: Opportunities: possible expansion to country Q; Eatbest takeover
8. Application: Weaknesses: current marketing plan; employee motivation; labour turnover; customer service; occupancy; HRM
9. Application: Threats: economic and market conditions haven't been favourable
10. Analysis: Identifying NH core competencies (factors are providing access to markets, contributing to positive customer perception, uniqueness)
11. Analysis: Reference to other techniques (SWOT, PEST, objectives/mission/vision statements, Boston Matrix, Porter's five Forces) and how these might provide overall picture for determining strategy
12. Analysis: Advantages and disadvantages of core competency analysis
13. Evaluation: Ranking usefulness of techniques in NH's situation
14. Evaluation: Strategic techniques are only as good as the information gathering process and ability of the analyst permit
15. Evaluation: Does NH have anyone with the ability to use core competency analysis and/or the other techniques? Are identified core competencies actually core competencies given the poor customer service
16. Evaluation: Core competencies can act as catalysts to focus ideas for development
17. Evaluation: Successful analysis requires to be set in the framework of strategic management/planning
18. Evaluation: Supported conclusion on role of core competencies in the process of analysis and strategic management. In a dynamic market, core competencies can be short lived