MNG3702
Assignment 2
Semester 2 2025
Due 15 September 2025
, MNG3702
Assignment 2
Semester 2 2025
Due 15 September 2025
Michelin Case Study: Strategic Management, Governance, and Sustainability
Question 1: Type of Strategic Control
The type of strategic control evident in Michelin’s transition from a pyramidal to a flat
organizational structure is implementation control. This form of control is concerned
with monitoring and steering the execution of strategic initiatives to ensure that intended
objectives are realized. CEO Jean-Dominique Senard’s 2015 restructuring is a prime
example: the rigid command-and-control hierarchy was dismantled in favor of a culture
grounded in empowerment, autonomy, and accountability. Employees were granted
authority to schedule work, set production targets, and manage absenteeism, thereby
resolving long-standing issues of declining productivity, poor safety, and material waste.
The measurable outcomes—improved safety records, reduced inefficiencies, and a
38% increase in annual gross profit between 2009 and 2021—illustrate how
implementation control effectively ensured that Michelin’s cultural and structural
transformation remained firmly aligned with its strategic vision of agility and
collaboration in the digital age.
Assignment 2
Semester 2 2025
Due 15 September 2025
, MNG3702
Assignment 2
Semester 2 2025
Due 15 September 2025
Michelin Case Study: Strategic Management, Governance, and Sustainability
Question 1: Type of Strategic Control
The type of strategic control evident in Michelin’s transition from a pyramidal to a flat
organizational structure is implementation control. This form of control is concerned
with monitoring and steering the execution of strategic initiatives to ensure that intended
objectives are realized. CEO Jean-Dominique Senard’s 2015 restructuring is a prime
example: the rigid command-and-control hierarchy was dismantled in favor of a culture
grounded in empowerment, autonomy, and accountability. Employees were granted
authority to schedule work, set production targets, and manage absenteeism, thereby
resolving long-standing issues of declining productivity, poor safety, and material waste.
The measurable outcomes—improved safety records, reduced inefficiencies, and a
38% increase in annual gross profit between 2009 and 2021—illustrate how
implementation control effectively ensured that Michelin’s cultural and structural
transformation remained firmly aligned with its strategic vision of agility and
collaboration in the digital age.
