MNG3702 Assignment 2 (COMPLETE ANSWERS) Semester 2 2025 – DUE 15 September 2025; 100% correct solutions and explanations.

MNG3702 Assignment 2 (COMPLETE ANSWERS) Semester 2 2025 – DUE 15 September 2025; 100% correct solutions and explanations. MNG3702 ASSIGNMENT 2, SEMESTER 2 INSTRUCTIONS • This assessment is based on chapters 10, 11, 12, 13 and 14 of the prescribed book and the corresponding lessons in the study guide. • Assignment DUE – 15 September 2025 • Ensure that the declaration form is fully completed and attached to your assignment. • Your assignment must include a Table of Contents. • AI-generated assignments will receive a mark of zero. • Please enable the EULA (End User License Agreement) to allow a similarity report to be generated. Assignments without a similarity report will not be marked. • Assignments with 0% similarity or with a similarity score of 70% to 100% will receive a mark of zero • No email submission will be accepted • The assignment must be typed • Read the case study below to answer the questions that follows: MNG HONESTY DECLARATION I, ________ ___________________ the undersigned, hereby declare that the work contained in this examination/assessment is my own original work and that I have acknowledged all additional sources I have used and/or quoted directly. NAME STUDENT NUMBER SIGNATURE DATE Michelin Bibendum Michelin is a leading French brand and manufacturer of tires and rubber products. The company was founded in 1888 by two Michelin brothers and became one of the largest tyre manufacturers in the world, with a market share of 14.8% in 2023. Oddly enough, the company also sells popular travel guides and road maps. They can make or break chefs by the number of Michelin stars they award to their restaurants. Michelin stars are a rating system used by the red Michelin Guide to grade restaurants on their quality and excellence. Restaurants can be awarded one, two or three stars, based on various criteria, such as quality of their ingredients used, the harmony of flavours in their dishes, the mastery of various techniques, the personality of the chef, and the consistency of the menu. The Michelin Man (Bibendum) is known worldwide. The history of the Michelin Guide The Michelin Guide is considered by many to be the hallmark of global fine dining and quality cuisine. It has immense power over chefs, restaurateurs, and foodies worldwide. It may divide opinions across the food service industry, but its influence is undeniable. French chef Paul Bocuse, a pioneer of nouvelle cuisine (a modern French style of preparing dishes that avoids rich, heavy foods, rather emphasizing the freshness of the ingredients used in the preparation of the dishes and the presentation thereof), once said, “Michelin i Frenchnly guide that counts.” The birth of the famous little red book is a very interesting story. When the Michelin tire company was established in 1888 by the brothers André and Édouard Michelin, it was a time when driving was perceived as a novelty to most. There were less than 3000 cars in France at the time. However, the brothers quickly recognized driving and mobility as a lasting trend. To encourage more road travel, and hence boost tire sales, they decided to create a comprehensive guidebook for motorists which catalogued hotels, restaurants, mechanics, and gas stations. In 1900, the very first edition of the Michelin Guide was published, and 35 000 copies were given out for free. As the tire company grew, so did the Michelin Guide. Country-specific editions were published throughout Europe, starting with Belgium in 1904. A charge was introduced for the first time in 1920 when André Michelin walked into a garage and saw copies of the guidebook being used to support a workbench. Realising that “Man only truly respects what he pays for,” the company started charging seven francs for the guides. By that time, the restaurant section of the Michelin Guide had become so popular that the company started to recruit anonymous inspectors to visit and review restaurants. Six years later in 1926, the Michelin star system was born. There were other notable changes as well, namely listing restaurants by specific categories, the debut of hotel listings, and the abandonment of paid-for advertisements. The single-star restaurant review system also expanded to the present a three-star system in 1931: “A very good restaurant in its category.” “Excellent cooking, worth a detour.” “Exceptional cuisine, worth a special journey.” In 1957, the Michelin Guide began awarding accolades to restaurants that provided “good meals at moderate prices,” a feature now called the Bib Gourmand. The Bib Gourmand symbol—the image of Bibendum or the Michelin Man licking his lips—debuted in the Michelin Guide in 1997. What began as a promotional device for the Michelin brothers’ tire business at the turn of the 20th century has grown into an authority in global fine dining. Since its first publication in 1900, more than 30 million copies of the Michelin Guide have been sold across the globe. It presently rates over 40,000 establishments in over 25 countries across four continents. Performance, strategy, and structure Michelin has a rich history as a company that started by manufacturing tires for bicycles and horse-drawn carriages. Then, they introduced pneumatic tires (rubber tires inflated with air) for automobiles in the 1980s. Michelin was reorganised as a holding company in 1951, with interests in tires, other rubber products, and synthetic rubber. Over the years, Michelin's worldwide revenue increased, despite frequent fluctuations in the market. The lowest point for the company occurred in 2009, which could be attributed to workers and managers in the tyre factories having different points of view regarding better use of technology with new projects which was not going according to plan. The world was changing, but Michelin was stuck with a pyramidal management structure better suited for a company operating during the first industrial revolution than operating in the digital age. It was imperative for the company to create a new organisational structure. In May 2012, Michelin appointed Jean-Dominique Senard, a French industrialist in the automobile industry, as chief executive officer. Senard was the first non-family member ever in this position. In 2015, he embarked on a restructuring process and transformed the company's culture by focusing on empowerment, responsibility, and accountability. The focus was to create more autonomy for employees, allowing them to perform managerial responsibilities without waiting for managers to tell them what to do. Before this initiative, employees viewed themselves as order takers from the bureaucrats above them, who made all the decisions. In this environment, managers were expected to know everything and had complete control over operations and performance. Communication was often seen as the start of disciplinary action. This led to lower productivity, declining safety records, more wasted time, and wasted materials. The changes CEO Senard affected to the organisational culture made an enormous difference to how work was scheduled and performed at the company. Workers could plan production schedules a week in advance, decide on the targets they had to meet, divide responsibilities for jobs among themselves, and manage employee absenteeism more effectively. Some of the immediate benefits of this change in culture were improved safety records and reduced waste. The employees were now responsible for meeting their own goals. With managers and employees striving to attain the same targets, the image of managers changed subtly from being bosses to coaches. Shop floor managers were seen as guiding their teams through unpredictable order cycles, qualifying the decisions the teams took and developing the potential of each team member. Employees with stronger potential than others to become team leaders were identified in this new environment. Eventually, teams were given the freedom to make their own decisions. The structure of the company changed from a bureaucracy and pyramidal structure to a flat and lean company. The company's old model of command and control was abandoned and replaced by a collaborative model based on trust and confidence. Michelin's annual gross profit increased with approximately 38% from 2009 to 2021, demonstrating the company's financial growth and stability in the tire industry. Corporate governance The Michelin Group’s parent company, Compagnie Générale des Établissements Michelin (CGEM), has