MNG3702 Assignment
2 (COMPLETE
ANSWERS) Semester 2
2025 - DUE 15
September 2025
[Document subtitle]
[School]
[Course title]
,MNG3702 Assignment 2 (COMPLETE ANSWERS) Semester 2 2025 - DUE 15 September 2025
Course
Strategic Implementation and Control IIIB (MNG3702)
Institution
University Of South Africa (Unisa)
Book
Practising Strategy - A Southern African Context 3e
MNG3702 Assignment 2 (COMPLETE ANSWERS) Semester 2 2025 - DUE 15 September 2025;
100% TRUSTED Complete, trusted solutions and explanations
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.”
Michelin: Strategic Diversification and Control
Michelin, a renowned French brand, was founded in 1888 by brothers Édouard and André
Michelin. While the company is globally recognized as one of the largest tire and rubber product
manufacturers — holding a 14.8% market share in 2023 — its brand extends far beyond tires.
In a surprising but strategically aligned diversification, Michelin also produces travel guides and
road maps, most famously the Michelin Guide, which rates restaurants using the prestigious
Michelin star system. These stars — awarded based on criteria such as ingredient quality,
culinary technique, flavor harmony, chef personality, and menu consistency — can elevate or
damage a chef's reputation, underlining the brand’s influence far beyond the automotive
industry.
,This unexpected expansion into hospitality and fine dining aligns with Michelin’s core mission:
enhancing the journey of travelers. Whether through the literal quality of a road trip (via tires)
or the experience along the way (via restaurants), Michelin maintains a cohesive strategic vision.
Such a broad scope of business activities requires a robust strategic control system. Strategic
control enables Michelin’s management to continuously assess whether business units — from
tire manufacturing to gourmet dining ratings — are aligned with overall strategic goals. This
involves:
Monitoring outcomes versus planned objectives
Ensuring activities support the brand’s core identity
Adapting to market changes while preserving quality and reputation
By using strategic control, Michelin ensures that all divisions — even those seemingly outside its
original domain — remain on track and true to the brand’s purpose: guiding and improving the
journey, whether on the road or at the table.
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)
When Michelin changed from a pyramidal (hierarchical) to a flat organisational structure, the
type of strategic control evident in this decision is:
Organizational (or Structural) Control
📌 Explanation:
Organizational control focuses on the structure and configuration of the organization to support
strategy execution. When a company like Michelin shifts from a pyramidal (tall) to a flat
structure, it is making a strategic move to:
Improve communication and decision-making speed
Increase employee empowerment and responsiveness
Enhance flexibility and innovation
, Better align daily operations with strategic goals
This form of control ensures that the organizational structure itself supports the overall
strategy — such as being more agile in a competitive global market or fostering closer
collaboration across departments.
✔️
Summary:
Type of Strategic Control:
➡️ Organizational (Structural) Control
Why?
Because the structural shift was aimed at aligning the company's internal framework with its
broader strategic objectives — improving adaptability, responsiveness, and employee
engagement.
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) Explanation of Corporate
Governance (2 marks):
Corporate governance refers to the system of rules, practices, and processes by which a
company is directed and controlled. It involves balancing the interests of stakeholders — such as
shareholders, management, customers, suppliers, financiers, government, and the community
— while ensuring accountability, fairness, and transparency in a company’s decision-making.
✅ Application to Michelin (2 marks):
Michelin ensures effective corporate governance through a supervisory board and executive
board structure, which separates oversight from day-to-day operations. The company also
follows strict ethical guidelines, promotes sustainable development, and regularly publishes
transparent financial and sustainability reports to keep stakeholders informed and build trust.
2 (COMPLETE
ANSWERS) Semester 2
2025 - DUE 15
September 2025
[Document subtitle]
[School]
[Course title]
,MNG3702 Assignment 2 (COMPLETE ANSWERS) Semester 2 2025 - DUE 15 September 2025
Course
Strategic Implementation and Control IIIB (MNG3702)
Institution
University Of South Africa (Unisa)
Book
Practising Strategy - A Southern African Context 3e
MNG3702 Assignment 2 (COMPLETE ANSWERS) Semester 2 2025 - DUE 15 September 2025;
100% TRUSTED Complete, trusted solutions and explanations
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.”
Michelin: Strategic Diversification and Control
Michelin, a renowned French brand, was founded in 1888 by brothers Édouard and André
Michelin. While the company is globally recognized as one of the largest tire and rubber product
manufacturers — holding a 14.8% market share in 2023 — its brand extends far beyond tires.
In a surprising but strategically aligned diversification, Michelin also produces travel guides and
road maps, most famously the Michelin Guide, which rates restaurants using the prestigious
Michelin star system. These stars — awarded based on criteria such as ingredient quality,
culinary technique, flavor harmony, chef personality, and menu consistency — can elevate or
damage a chef's reputation, underlining the brand’s influence far beyond the automotive
industry.
,This unexpected expansion into hospitality and fine dining aligns with Michelin’s core mission:
enhancing the journey of travelers. Whether through the literal quality of a road trip (via tires)
or the experience along the way (via restaurants), Michelin maintains a cohesive strategic vision.
Such a broad scope of business activities requires a robust strategic control system. Strategic
control enables Michelin’s management to continuously assess whether business units — from
tire manufacturing to gourmet dining ratings — are aligned with overall strategic goals. This
involves:
Monitoring outcomes versus planned objectives
Ensuring activities support the brand’s core identity
Adapting to market changes while preserving quality and reputation
By using strategic control, Michelin ensures that all divisions — even those seemingly outside its
original domain — remain on track and true to the brand’s purpose: guiding and improving the
journey, whether on the road or at the table.
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)
When Michelin changed from a pyramidal (hierarchical) to a flat organisational structure, the
type of strategic control evident in this decision is:
Organizational (or Structural) Control
📌 Explanation:
Organizational control focuses on the structure and configuration of the organization to support
strategy execution. When a company like Michelin shifts from a pyramidal (tall) to a flat
structure, it is making a strategic move to:
Improve communication and decision-making speed
Increase employee empowerment and responsiveness
Enhance flexibility and innovation
, Better align daily operations with strategic goals
This form of control ensures that the organizational structure itself supports the overall
strategy — such as being more agile in a competitive global market or fostering closer
collaboration across departments.
✔️
Summary:
Type of Strategic Control:
➡️ Organizational (Structural) Control
Why?
Because the structural shift was aimed at aligning the company's internal framework with its
broader strategic objectives — improving adaptability, responsiveness, and employee
engagement.
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) Explanation of Corporate
Governance (2 marks):
Corporate governance refers to the system of rules, practices, and processes by which a
company is directed and controlled. It involves balancing the interests of stakeholders — such as
shareholders, management, customers, suppliers, financiers, government, and the community
— while ensuring accountability, fairness, and transparency in a company’s decision-making.
✅ Application to Michelin (2 marks):
Michelin ensures effective corporate governance through a supervisory board and executive
board structure, which separates oversight from day-to-day operations. The company also
follows strict ethical guidelines, promotes sustainable development, and regularly publishes
transparent financial and sustainability reports to keep stakeholders informed and build trust.
