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Joe Johnson owns and runs Slippery Shirt Company - VCE - SSCE Business Management - Question 3 - 2006 - Paper 1

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Joe Johnson owns and runs Slippery Shirt Company. He makes large profits by using 'sweatshops' (where pay and conditions are well below the industry standard) to sew... show full transcript

Worked Solution & Example Answer:Joe Johnson owns and runs Slippery Shirt Company - VCE - SSCE Business Management - Question 3 - 2006 - Paper 1

Step 1

policy

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Answer

A policy is a formal statement that outlines specific requirements or guidelines that must be followed within an organization. It serves as a framework for decision-making and sets the standards for behavior and actions within the company.

Step 2

organisational change

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Answer

Organisational change refers to the process of modifying the structure, operations, or culture of an organization to adapt to internal or external factors. This can be due to shifts in market conditions, technology advancements, or internal growth, and is essential for maintaining competitiveness.

Step 3

Describe an appropriate change management theory Slippery Shirt Company could use to implement the new policies.

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Answer

One effective change management theory for Slippery Shirt Company is Lewin's Change Model. This model consists of three stages: unfreezing, change, and refreezing. The unfreezing stage involves preparing the organization for change, which includes educating employees about the necessity of new policies. The change stage encompasses the implementation of these policies, and finally, the refreezing stage establishes stability by ensuring that new practices are followed consistently.

Step 4

Discuss how two elements of the external environment of Slippery Shirt Company are pressuring the organisation to change its policies.

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Answer

One element pressuring Slippery Shirt Company is consumer awareness. Increasing public scrutiny regarding ethical labor practices has led consumers to demand socially responsible business operations. Another element is regulatory changes; governments are implementing stricter labor laws, compelling companies to adapt their policies to comply with these new regulations to avoid penalties.

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