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Examen

MNG3702 Assignment 2

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Institución
MNG3702
Grado
MNG3702

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Subido en
20 de septiembre de 2025
Número de páginas
20
Escrito en
2025/2026
Tipo
Examen
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MNG3702 Assignment 2




COMPLETE ANSWERS) Semester 2
2025 - DUE 15 September 2025;




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,MNG3702 Assignment 2 (COMPLETE
ANSWERS) Semester 2 2025 - DUE 15
September 2025;
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. “Strategic control enables
management to monitor strategic outcomes against its
planned strategic goals to ensure that all activities
remain on track and correspond with the set course.”
Identify the type of strategic control evident in the
Michelin company when they changed from a pyramidal
to a flat organisational structure. Substantiate your
answer. , of which 1 mark is awarded for the identification
of the correct type of strategic control, and 3 marks is
awarded for the substantiation)


The type of strategic control evident is implementation control.

, Substantiation:
Implementation control is designed to evaluate whether the overall strategy
should be changed in light of the results of the implementation process. It
involves monitoring strategic thrusts (new key strategic programs) and
checking major events (milestones) to see if the strategy is progressing as
planned or if adjustments are needed.

In the Michelin case, the strategic thrust was the radical shift in
organisational culture and structure initiated by CEO Senard. The move from
a rigid, top-down pyramidal structure to a flat, collaborative model was a
major strategic program. Implementation control was applied by monitoring
key outcomes of this change, such as:

 Improved safety records and reduced waste: These were immediate,
measurable outcomes that indicated the new strategy was yielding positive
results.
 Changes in employee behaviour and management roles: The shift
from employees being "order takers" to autonomous teams, and managers
from "bosses" to "coaches," were critical behavioural milestones that were
monitored to confirm the strategy was being implemented effectively.
 The identification of new team leaders: This was an emergent result
that validated the new approach to talent development within the flat
structure.

The fact that the company continued and entrenched this new structure
based on these positive outcomes demonstrates that management was
using implementation control to validate the strategic change and ensure it
remained on track to achieve its goals of empowerment and improved
performance



Explain the concept ‘corporate governance’ and identify
the way in which Michelin ensures effective governance.
(, of which 2 marks is awarded for the correct explanation
of corporate governance, and 2 marks are awarded for
the application to Michelin)
Corporate governance refers to the systems, principles, and processes by
which a company is directed and controlled. It fundamentally involves
balancing the interests of a company's many stakeholders, such as
shareholders, management, customers, suppliers, financiers, government,
and the community. It provides the framework for attaining a company's
objectives and encompasses practically every sphere of management, from
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