Practise preparing and analysing SWOT analyses for IB Business Management SL using real exam-style questions and mark schemes.
At the time, The Imperial was recruiting receptionists. Martin applied and got one of the positions. Five years later, he was promoted to head of reception, and four years after that, though only 30 years old, he was appointed as manager of the entire hotel.
Martin also had a problem of human resources: how to improve his working relationship with Susan Chapman, the Head of Housekeeping.
In November 2013, a particular situation brought these tensions to the surface. One employee in the Housekeeping Department, Guthoni, was frequently calling in sick and did not come to work. Rather than enquiring about the reason, Susan dismissed Guthoni for repeated absenteeism. What Susan did not know is that Guthoni had been diagnosed with a terminal illness and required frequent medical treatment.
Global Properties (GP) owns The Imperial through a private limited company. GP takes a hands-off approach and prefers an on-site manager who generates profits; most profits are paid to GP shareholders in dividends. Martin Kimathi was promoted from receptionist and Head of Reception to manager. Relevant recruitment methods for a new manager could include internal promotion of an experienced hotel employee or external recruitment using applications, interviews and references. The Imperial’s structure can be shown as GP/shareholders at the top, the hotel manager below, heads of departments such as Reception, Catering and Housekeeping below the manager, and supervisors and operational employees below them. Strengths include a famous corporate image, high-quality service, elegant décor, private beach and airport access; weaknesses include limited improvement budgets, old-fashioned facilities, declining bookings and a shrinking market share. Opportunities include rising tourism and new traveller interest in safaris and cultural tourism; threats include political unrest and competition from newer luxurious hotels with better facilities.
Analyse the advantages and disadvantages for G P of using a SWOT analysis.
A SWOT analysis has several advantages:
- the acronym is well-known (strengths, weaknesses, opportunities, threats)
- the framework is easy to understand (positive aspects: strengths and opportunities;
negative aspects: weaknesses and threats)
- it is an expected element of the study of any organization
- a key advantage of the model is that it covers both internal and external aspects.
This is good for G P, as it provides a simple and yet comprehensive overview of internal aspects (such as the internal tensions and conflicts around Susan's leadership style, as a weakness) and external ones (such as the increasing competition from other high-quality local hotels, as one of the threats).
A SWOT analysis however has several disadvantages:
- it would only give a snapshot of The Imperial at a particular time (for example, the liquidity problems, as a weakness, are only relevant during certain months of the year)
- it would also need to be revised regularly, following changes in the internal environment (for example, if the quality of the hotel was deteriorating, as a new weakness) or in the external environment (for example, if tourism to Mombasa was suddenly decreasing or stopping, following an outburst of terrorist activity)
- it produces many ideas, but without any sense of priority nor solution or decision
- it is also likely to be based on opinions and therefore subject to bias.
Accept any other relevant advantage and disadvantage with relevant analysis.
N.B. candidates are not asked to do a SWOT analysis. The question is about the advantages and disadvantages of using the model. If an answer only consists of a SWOT analysis, award a maximum of [2 marks].
If an answer is one-sided award a maximum of [5 marks].
If an answer has no context award a maximum of [3 marks].
Marks should be allocated according to the markbands on page 3.