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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 driving force at AusClean Air is customer demand. Customers are increasingly seeking environmentally friendly and noiseless air conditioning units. This demand pushes AusClean Air to innovate and improve its products, which could enhance their market share and positively impact the company’s reputation. By responding to this demand through the introduction of new technologies, AusClean Air aims to align its offerings more closely with customer expectations.
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
Two stakeholders of AusClean Air are:
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Employees: They have a vested interest in the success of the company as their job security and working conditions are tied to its performance. AusClean Air should involve employees in the change process, ensure transparent communication, and provide training to align their skills with new technologies.
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Customers: The demand for environmentally friendly products means customers are increasingly concerned about the ecological impact of their purchases. AusClean Air should consider customer feedback and preferences when implementing changes, ensuring their innovation meets both market expectations and ethical standards.
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 outlines its core values and objectives. By planning to alter the mission statement to include commitments to environmental and customer satisfaction, Hilary is directly aligning the company’s strategic direction with these priorities. This relationship ensures that all planning processes are informed by the mission statement, guiding decision-making and operational priorities to fulfill the company’s long-term goals.
Step 4
Identify one low-risk strategy and one high-risk practice for dealing with resistance to change. Discuss how these practices could be used to help ensure that the employees are more comfortable with the planned new technologies.
Answer
A low-risk strategy for dealing with resistance to change could be providing training and support. By offering resources and training sessions on new technologies, employees can gain confidence and skill in using them, reducing anxiety and resistance.
In contrast, a high-risk practice might be mandatory implementation of the new technologies without prior engagement. This could lead to significant backlash and employee dissatisfaction. To ensure a smooth transition, it's crucial that any high-risk practices are accompanied by clear communication and support, addressing concerns and demonstrating the benefits of the changes.