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Evaluate how different types of planning contribute to business success - Leaving Cert Business - Question B - 2016
Question B
Evaluate how different types of planning contribute to business success. Relate your answer to the Mayfair Hotel, making any appropriate assumptions. (C) Discuss th... show full transcript
Worked Solution & Example Answer:Evaluate how different types of planning contribute to business success - Leaving Cert Business - Question B - 2016
Step 1
Evaluate how different types of planning contribute to business success.
Answer
Different types of planning play pivotal roles in ensuring the success of a business, such as the Mayfair Hotel.
1. Corporate Strategic Planning: This involves long-term planning, typically spanning about 5 years. It sets a framework for objectives that guide the business. For the Mayfair Hotel, a strategic plan might include increasing its market share by 20% over the next 5 years, which incorporates developing and marketing new services to attract more guests.
2. Functional Tactical Planning: This is generally more short-term, covering plans designed to achieve strategic objectives. For instance, in the Mayfair Hotel, this might involve organizing specific events for their centenary celebration, such as themed parties or exclusive offers that leverage their high-end service reputation.
3. Operational Planning: This type of planning focuses on day-to-day operations. For the hotel, this would mean ensuring that all daily tasks are completed efficiently, such as room cleaning schedules and event management protocols, to guarantee excellent customer service and satisfaction.
4. Manpower Planning: Proper staffing is vital for delivering services. The Mayfair Hotel must ensure that it has adequately trained staff, especially during peak periods such as wedding seasons. Temporary contracts may be required to manage busy events efficiently.
5. Contingency Planning: This involves preparing for unexpected situations. The Mayfair Hotel should have backup plans, such as arrangements for power outages or emergencies, to minimize disruptions during events.
Overall, each type of planning must align and contribute to the overarching goals of the hotel, ensuring both short-term operations and long-term sustainability.
Step 2
Discuss the benefits and challenges for a business of developing a matrix organisation structure.
Answer
Developing a matrix organization structure has its unique benefits and challenges for a business.
Benefits:
- Diverse Perspectives: Employees from various departments can contribute their insights, fostering innovative ideas. For example, for the Mayfair Hotel's centenary projects, this could lead to creative event ideas that blend marketing and hospitality's best practices.
- Improved Communication: When team members collaborate, it enhances relationships and communication. This is critical for ensuring that project goals are met effectively.
Challenges:
- Decision-Making Complications: Having a team-oriented structure can lead to situational challenges whereby a dominant voice may overshadow others, creating imbalances in input and responsibility.
- Resource Allocation Issues: Employees may struggle to prioritize their responsibilities under dual reporting lines, leading to potential conflicts in direction and focus. This could hinder project efficiency.
In conclusion, while a matrix organization structure can enhance teamwork and innovation, it requires careful management to address the hurdles of coordination and decision-making.