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In response to an increased customer demand for air conditioners, AusClean Air’s CEO, Hilary Lopez, has announced that 'environmentally friendly and noiseless units' will be produced in the company’s manufacturing plant to gain a substantial competitive advantage and increase AusClean Air’s market share - VCE - SSCE Business Management - Question 2 - 2014 - Paper 1
Question 2
In response to an increased customer demand for air conditioners, AusClean Air’s CEO, Hilary Lopez, has announced that 'environmentally friendly and noiseless units'... show full transcript
Worked Solution & Example Answer:In response to an increased customer demand for air conditioners, AusClean Air’s CEO, Hilary Lopez, has announced that 'environmentally friendly and noiseless units' will be produced in the company’s manufacturing plant to gain a substantial competitive advantage and increase AusClean Air’s market share - VCE - SSCE Business Management - Question 2 - 2014 - Paper 1
Step 1
Describe one driving force or one restraining force that is affecting AusClean Air.
Answer
A significant driving force for AusClean Air is the increased demand from customers for environmentally friendly products. This trend encourages AusClean Air to innovate and produce air conditioners that meet these expectations. Customers are becoming more conscious of environmental issues and prefer products that minimize ecological impact. Therefore, responding to this customer demand is crucial for AusClean Air's competitive advantage in the market.
Step 2
Identify two stakeholders of AusClean Air. Explain their interest in the organisation and how this should be taken into account by AusClean Air when considering its ethical and social responsibilities.
Answer
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Employees: Employees are directly affected by changes in production and the introduction of new technologies. Their job security and work conditions may be transformed, which requires AusClean Air to involve them in the decision-making process and address their concerns to maintain morale and productivity.
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Customers: Customers are interested in the quality, price, and environmental impact of the air conditioners. Ensuring that products align with customer expectations not only meets ethical obligations but also enhances brand loyalty and market reputation. AusClean Air should actively seek customer feedback and prioritize sustainable practices in its operations to fulfill these responsibilities.
Step 3
Describe the relationship between the mission statement and the planning undertaken by Hilary as the CEO of AusClean Air.
Answer
The mission statement of AusClean Air serves as a guiding principle that reflects the company’s core values and objectives. Hilary's planning processes should align with this mission to ensure that all strategic decisions support the long-term goals of the organization. By committing to environmental sustainability and customer satisfaction within the mission statement, Hilary can create targeted strategies that integrate these values into everyday operations. This alignment fosters a strong organizational culture and ensures that planning is directed towards achieving the desired mission.
Step 4
Identify one low-risk strategy and one high-risk strategy for dealing with resistance to change. Discuss how these strategies will help reduce the problems that arise for employees when AusClean Air introduces the planned new technologies.
Answer
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Low-Risk Strategy: Training and Support Programs - Providing comprehensive training programs for employees on the new technologies can help ease anxieties and build confidence. This strategy promotes a smoother transition and reduces resistance as employees feel empowered and capable of performing their roles effectively.
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High-Risk Strategy: Coercive Measures - Implementing measures that require employees to adapt or face penalties can lead to quick compliance. However, this strategy may also foster resentment, impact morale negatively, and lead to high turnover rates. It is crucial that AusClean Air carefully weigh the implications of this approach, as it may undermine employee trust and loyalty in the long run.