Assume MAA's directors choose option 2. Evaluate the importance of corporate planning to the successful implementation of this strategy.

Mark scheme

Marking points from the official mark scheme (Oct/Nov 2022). The mark or mark type is shown in brackets.

1. [1] Corporate planning is a process of conducting situational analysis, setting objectives, deciding on strategies, implementing the planned strategies and monitoring the results
2. [1] Corporate plan: methodical plan containing details of the organisation's objectives and the strategies to be followed to achieve them
3. [1] Benefits: Provides a clear focus for senior managers, which they can communicate to those below them in the hierarchy
4. [1] Benefits: Planning requires senior managers to consider the organisation's strengths and weaknesses in relation to the business environment
5. [1] Benefits: Objectives may be reviewed on a regular basis and performance compared against targets.
6. [1] Benefits: Also includes contingency planning to mitigate impact of disasters
7. [1] Limitations: External factors are unpredictable
8. [1] Limitations: Disasters still occur
9. [1] Limitations: Cannot have contingency plans for all eventualities
10. [1] Joint venture with international hotel company will mean two very different organisations working together, as hotel company likely to be 'profit led' versus social objectives of MAA.
11. [1] Culture clash likely
12. [1] Target market for luxury safari lodge may be different
13. [1] The development may be perceived as moving away from key 'mission' of MAA
14. [1] Contingency plan for disasters such as extreme weather, natural disasters, disruption to tourism, guest illness e.g. food poisoning.
15. [1] Effective corporate planning can develop links and opportunities for synergy between MAA and the new safari lodge, benefitting both organisations
16. [1] Employees may benefit from more opportunities in the new lodge, leading to better motivation and retention
17. [1] Culture clashes can be avoided by good communication, employees working together in teams, increasing effectiveness and loyalty.
18. [1] Change management will be a challenge as new project is very different, may be costly
19. [1] Planning overall can be expensive and time consuming and the need to train staff
20. [1] With planning the public relations response to a disaster is much more likely to be quick and appropriate so that senior managers can manage the media attention and communicate effectively what the company intends to do, by when and how from disasters both in terms of costs and bad PR and loss of customer loyalty
21. [1] Avoiding disasters is better than planning what to do if they happen.
22. [1] Plans need to be updated frequently as the business develops, increasing costs
23. [1] Judgement of extent to which Corporate Planning is important to successful implementation of Option 2.
24. [1] Essential to set objectives and monitor closely, especially maintaining the key social objectives of MAA
25. [1] To what extent are the directors (Muka and family) committed to the social objectives in the long term?
26. [1] Recognition that other factors will have significant impact on success of MAA
27. [1] Cost of MAA needs to be balanced against the potential costs of not doing it.
28. [1] Which potential disasters should be planned for?
29. [1] How much time is spent on preparing and testing contingency plans?