, MNG3702 Assignment 2
Semester 2 2025
DUE 15 September 2025
Use this document as a guide and for references to answer your assignment
Question 1
“Organisations will not survive over the long term without the ability to learn
and adapt to changing environments.”
1.1 There are various mechanisms that organisations can use, in combination, to
become a learning organisation. Apply any FIVE of these mechanisms to the
Michelin company throughout its history of publishing the Michelin guide. In your
answer, you need to identify the mechanism and then apply it to the company. (10
marks)
To survive over the long term, organisations must learn from experience and adapt
to changing conditions. Michelin’s history of publishing the Michelin Guide
provides clear examples of how an organisation can use different mechanisms to
become a learning organisation. Five of these mechanisms are outlined below.
1. Continuous feedback and knowledge acquisition
A key feature of a learning organisation is systematically gathering feedback from
its customers and environment. Michelin originally launched the Guide in 1900 as a
free motoring handbook for French drivers, offering maps, petrol stations and repair
information. Over time, the company observed that drivers were also seeking
reliable places to eat and stay. By listening to this feedback and analysing user
behaviour, Michelin expanded its content to include hotels and restaurants. This
demonstrates its ability to learn directly from customer needs and update its product
accordingly.
2. Experimentation and innovation
Learning organisations test new ideas and innovate rather than simply maintain
existing practices. Michelin displayed this through its introduction of anonymous
restaurant inspections in the 1920s – a pioneering approach at the time – to ensure
unbiased and credible reviews. It also experimented by extending the Guide beyond
France to other European countries and later to the United States and Asia. Each
, expansion served as a pilot, allowing Michelin to refine its processes and adapt
criteria to different cultures before rolling out globally.
3. Knowledge transfer and sharing
Another mechanism is the formal transfer of learning within the organisation.
Michelin achieved this by creating a standardised inspector training programme and
a consistent set of evaluation criteria. Lessons learned in one region (for example,
how to assess Japanese kaiseki cuisine) were documented and shared with
inspectors elsewhere. This knowledge sharing ensured uniformity and allowed the
company to build a global reputation for reliability.
4. Leadership that supports learning
Leadership plays a crucial role in setting a vision and allocating resources for
learning. André Michelin and his successors did not see the Guide purely as a
marketing tool for selling tyres, but as a means of shaping motoring and dining
culture. Later leaders continued this vision by investing in digital platforms and
mobile apps, recognising the shift from printed guides to online information. Their
willingness to evolve the Guide reflects leadership support for continuous
adaptation.
5. Systems for measuring performance and outcomes
Finally, learning organisations use data and metrics to guide improvement.
Michelin regularly evaluates how its ratings influence restaurants and its own
brand. In response to changing social values, it introduced new distinctions such as
the ―Bib Gourmand‖ for good-value cooking and, more recently, ―Green Stars‖ to
highlight sustainability. These innovations show that Michelin monitors trends,
assesses impact and updates its criteria to remain relevant.
In sum, through feedback gathering, experimentation, knowledge sharing,
supportive leadership and performance measurement, Michelin has continually
learned and adapted its Guide over more than a century. These mechanisms have
enabled it to maintain credibility and influence in a rapidly changing hospitality and
travel environment.
Semester 2 2025
DUE 15 September 2025
Use this document as a guide and for references to answer your assignment
Question 1
“Organisations will not survive over the long term without the ability to learn
and adapt to changing environments.”
1.1 There are various mechanisms that organisations can use, in combination, to
become a learning organisation. Apply any FIVE of these mechanisms to the
Michelin company throughout its history of publishing the Michelin guide. In your
answer, you need to identify the mechanism and then apply it to the company. (10
marks)
To survive over the long term, organisations must learn from experience and adapt
to changing conditions. Michelin’s history of publishing the Michelin Guide
provides clear examples of how an organisation can use different mechanisms to
become a learning organisation. Five of these mechanisms are outlined below.
1. Continuous feedback and knowledge acquisition
A key feature of a learning organisation is systematically gathering feedback from
its customers and environment. Michelin originally launched the Guide in 1900 as a
free motoring handbook for French drivers, offering maps, petrol stations and repair
information. Over time, the company observed that drivers were also seeking
reliable places to eat and stay. By listening to this feedback and analysing user
behaviour, Michelin expanded its content to include hotels and restaurants. This
demonstrates its ability to learn directly from customer needs and update its product
accordingly.
2. Experimentation and innovation
Learning organisations test new ideas and innovate rather than simply maintain
existing practices. Michelin displayed this through its introduction of anonymous
restaurant inspections in the 1920s – a pioneering approach at the time – to ensure
unbiased and credible reviews. It also experimented by extending the Guide beyond
France to other European countries and later to the United States and Asia. Each
, expansion served as a pilot, allowing Michelin to refine its processes and adapt
criteria to different cultures before rolling out globally.
3. Knowledge transfer and sharing
Another mechanism is the formal transfer of learning within the organisation.
Michelin achieved this by creating a standardised inspector training programme and
a consistent set of evaluation criteria. Lessons learned in one region (for example,
how to assess Japanese kaiseki cuisine) were documented and shared with
inspectors elsewhere. This knowledge sharing ensured uniformity and allowed the
company to build a global reputation for reliability.
4. Leadership that supports learning
Leadership plays a crucial role in setting a vision and allocating resources for
learning. André Michelin and his successors did not see the Guide purely as a
marketing tool for selling tyres, but as a means of shaping motoring and dining
culture. Later leaders continued this vision by investing in digital platforms and
mobile apps, recognising the shift from printed guides to online information. Their
willingness to evolve the Guide reflects leadership support for continuous
adaptation.
5. Systems for measuring performance and outcomes
Finally, learning organisations use data and metrics to guide improvement.
Michelin regularly evaluates how its ratings influence restaurants and its own
brand. In response to changing social values, it introduced new distinctions such as
the ―Bib Gourmand‖ for good-value cooking and, more recently, ―Green Stars‖ to
highlight sustainability. These innovations show that Michelin monitors trends,
assesses impact and updates its criteria to remain relevant.
In sum, through feedback gathering, experimentation, knowledge sharing,
supportive leadership and performance measurement, Michelin has continually
learned and adapted its Guide over more than a century. These mechanisms have
enabled it to maintain credibility and influence in a rapidly changing hospitality and
travel environment.
