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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, such as strategic, tactical, and operational planning, play crucial roles in ensuring the success of a business like the Mayfair Hotel.
Strategic Planning
Strategic planning focuses on long-term goals, typically spanning five years or more. For the Mayfair Hotel, a strategic plan could include objectives like increasing market share by 20% over the next five years. The hotel can aim to diversify its offerings to include more high-profile events or partnerships that could enhance its brand image and attract a wider clientele.
Tactical Planning
Tactical planning is more short-term and implements strategies outlined in the strategic plan. For example, the Mayfair Hotel might conduct market research to explore hosting international conferences, which would inform their action plans to establish necessary resources and facilities for successful events.
Operational Planning
Operational planning involves daily and weekly operations management. This could mean ensuring that staff are scheduled effectively to handle the increased needs during the centenary celebration. Additionally, operational planning would involve managing day-to-day tasks like cleaning the hotel, responding to guest feedback, and ensuring that all areas of the hotel function smoothly during peak times.
Manpower Planning
This aspect involves recruiting and allocating the right personnel with the appropriate skills. The Mayfair Hotel may need to hire temporary staff to manage the influx of guests during its centenary events, ensuring that services are maintained at a high level.
Contingency Planning
Amidst uncertainties, contingency plans are essential. The Mayfair Hotel could establish backup plans for emergencies such as supply shortages, ensuring that they can maintain service delivery despite unexpected challenges. Having these various layers of planning will contribute significantly to the business's overall success.
Step 2
Discuss the benefits and challenges for a business of developing a matrix organisation structure.
Answer
A matrix organisation structure blends functional and project-based divisions, where team members report to multiple managers. This structure has its pros and cons.
Benefits
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Co-ordinated Approach: The matrix structure allows for better problem-solving as teams pull together diverse skills from various functions. For the Mayfair Hotel, this can enhance creativity in planning events, as different viewpoints can lead to innovative solutions.
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Shared Expertise: Employees bring different skills and experiences, which can lead to improved professional development. Team members at the hotel can learn from each other and grow more competent in their roles.
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Responsibility and Collaboration: With a team leader guiding projects, all members take part in decision-making, fostering a sense of ownership. This is particularly beneficial in ensuring everyone’s voice is heard during the planning of events.
Challenges
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Communication Hurdles: The dual reporting lines can lead to confusion over priorities. Team members may find it difficult to balance the needs of their functional roles with project demands.
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Team Development Issues: New teams often struggle to build cohesion initially, which can inhibit performance. At the Mayfair Hotel, team dynamics may take time to solidify, affecting planning and execution.
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Resource Conflict: Conflicts may arise as different managers vie for their team's time and resources. For instance, the sales and production teams might disagree on budget allocations for the centenary celebrations, leading to friction in achieving project goals.
In summary, while a matrix organisation structure can enhance flexibility and resource allocation, it requires careful management to mitigate communication issues and resource conflicts.