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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

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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.png

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.

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Answer

A significant restraining force affecting AusClean Air is employee resistance to change. This resistance may stem from fear of the unknown regarding new technologies that may disrupt their established work routines. In any organization, employees often find comfort in familiar processes and systems; thus, changing to environmentally friendly and noiseless units can create unease. This reluctance can hinder the successful implementation of new practices, ultimately delaying the organization's ability to adapt to market demands.

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.

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Answer

  1. Employees: Employees are crucial stakeholders as they are directly affected by changes within the organization. Their interest lies in job security and a stable working environment. AusClean Air must ensure transparent communication and involve employees in the transition process to address their concerns, thus fulfilling ethical obligations as an employer.

  2. Customers: Customers are another key stakeholder group who demand environmentally friendly and reliable products. Their interest is in the quality and sustainability of the air conditioning units produced. By aligning its mission with customer expectations, AusClean Air demonstrates accountability and commitment to corporate social responsibility.

Step 3

Discuss the relationship between the mission statement and the planning undertaken by Hilary as the CEO of AusClean Air.

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Answer

The mission statement serves as a foundational guide for an organization’s strategic planning. In this context, Hilary is considering amending AusClean Air's mission statement to reflect its commitment to environmental sustainability and customer satisfaction. A well-aligned mission statement not only articulates the company’s core values but also informs the planning process. For instance, by emphasizing environmental responsibility, planning initiatives may prioritize the development of innovative, eco-friendly technologies, thus tailoring operational strategies to align with the stated mission and better meet customer expectations.

Step 4

Identify one low-risk strategy and one high-risk practice for dealing with resistance to change. Discuss how these practices would be effective in ensuring that employees are more comfortable when AusClean Air introduces the planned new technologies.

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Answer

Low-risk strategy: Providing training and development programs to upskill employees on new technologies is a low-risk strategy. This not only equips employees with the necessary skills but also reduces anxiety associated with change. By fostering a learning culture, AusClean Air can demonstrate its commitment to employee growth, making transitions smoother.

High-risk practice: Implementing the new technologies without consulting employees is a high-risk practice. This could lead to increased feelings of alienation and frustration among staff, possibly resulting in a decline in morale and productivity. To mitigate this risk, AusClean Air should ensure that change initiatives are communicated effectively and involve employee feedback to cultivate a sense of ownership and acceptance.

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