Cambridge A Level Business (for first examination in 2016) 9609 — 2023 May/June Paper 4 · Variant 3

2 Advise Carmen on whether the use of a core competence framework is sufficient to develop a successful new business strategy for RHR. [20]

Mark scheme: 2 Advise Carmen on whether the use of a core competence framework is sufficient to develop a successful new business strategy for RHR. Level AO1 Knowledge and understanding 3 marks AO2 Application 2 marks AO3 Analysis 8 marks AO4 Evaluation 7 marks Description Description Description Description 3 7–8 marks Developed analysis of the overall strategy that identifies connections between causes, impacts and/or consequences. 6–7 marks Effective evaluation A developed judgement/conclusion is made in the business context that draws together developed evaluative comments which balance some key arguments in the business context. 2 2–3 marks Developed knowledge of relevant key term(s) and/or factor(s) is used to answer the question. 2 marks Developed application of relevant point(s) to the business context. 4–6 marks Developed analysis of individual strategic element(s) that identifies connections between causes, impacts and/or consequences. 3–5 marks Developed evaluation  A developed judgement/conclusion is made.  Developed evaluative comments which balance some key arguments. 1 1 mark Limited knowledge of relevant key term(s) and/or factor(s) is used to answer the question. 1 mark Limited application of relevant point(s) to the business context. 1–3 marks Limited analysis that identifies connections between causes, impacts and/or consequences. 1–2 marks Limited evaluation  A judgement/conclusion is made with limited supporting comment/evidence.  An attempt is made to balance the arguments. 0 0 marks No creditable response. 0 marks No creditable response. 0 marks No creditable response. 0 marks No creditable response. 20 Question Answer Marks 2 Indicative content Responses may include: AO1 Knowledge and understanding Knowledge can be awarded for any relevant business strategy knowledge.  The purpose of business strategy.  The meaning and purpose of strategic management.  What a core competence framework is  Alternative approaches to develop business strategy, including: – blue ocean strategy – scenario planning – SWOT analysis – PEST analysis – Porter’s five forces – Ansoff matrix – force field analysis – Decision trees AO2 Application  Lack of growth in the current market  Growth in city/business hotels  The three competences identified  Human resources – strong leadership and communication  Marketing – customer loyalty  Operations – delivering exceptional customer service  Any element of the timeline  Any element of the appendices AO3 Analysis Analysis for core competence framework ideally and then up to two alternatives but award for analysis of ANY models up to three ( and for a one-sided argument and for a two-sided argument or contrast):  RHR operate all-inclusive holiday hotels – how much of this can be transferred to the running of a city hotel? Question Answer Marks 2  Core competencies around running the hotel and delivering a good customer experience may be transferable but how will their marketing need to change for the new strategy?  There seems to be just 3 areas for the framework – is this sufficient to ensure the success of the city hotels? What other information is needed?  Is the development of the new strategy at the expense of the Asian expansion? – which would be more aligned with the core competencies than city hotels. How does Juan feel about the change of direction after his work on the Asian market and potential for growth (appendix 3)? Candidates may offer up alternative approaches:  May want to use the Blue Ocean Strategy to help with move to city hotels as they redefine what the company delivers across a number of new locations.  Scenario planning could help map what may happen in city locations and how they differ/are similar to what they know from running resort hotels.  SWOT analysis may help identify strengths that can be transferred to city hotels whilst highlighting the problems they may face in a different model to how they currently operate.  PEST analysis could help if they are operating in countries where there is no RHR for example in the UK or Northern Europe and they need an understanding of how those countries work.  Five forces would help understand the rivalry they face in a very crowded city hotel market.  Ansoff’s matrix may be useful in weighing up whether they should focus on market or product development moving forward – or if there are other possibilities for growth.  Force field analysis could help Carmen to understand the constraining and driving forces in developing the new strategy. This may help her to identify actions that need to be taken to reduce constraining forces.  Decision trees could be used to help make a quantitative led decision between Asia or urban hotels expansion. AO4 Evaluation ( and and ): Evaluation will largely depend on the points raised in the analysis of the approaches needed to develop the new strategy other than the core competency framework.  Candidates should state that the Core Competency Framework is/isn’t sufficient for L1 Eval.  RHR clearly have a set of core competencies that will help them set up hotels but is this enough for the new city hotels format? Should Carmen be using a combination of the strategic approaches?  How quickly does Carmen expect this to happen? Is there time to test the waters with the city hotel strategy? Question Answer Marks 2  Has Carmen over-simplified what they do? Without using other models she may take too much of a risk while the Asian growth would be easier to implement given their current business model.  Many of the approaches rely heavily on the accuracy of forecast data – Does Carmen have the data?  Core Competence Framework is enough as it gives managers the direction they need as they implement the strategies related to it throughout the new hotels. This is an established business that should be able to deliver a hotel experience wherever they set up.  Advice to Carmen should make clear whether the core competence framework is sufficient or whether it should be supported by other models, and if so, which? Accept all valid responses.

More questions on Business strategy