Description
This document contains workings, explanations and solutions to the MNG3702 Assignment 2 Semester 1 2023. Questions covered:
- Question 1 Edward Hall developed the Iceberg analogy of organisational culture in 1976. By making use of this analogy, explain the organisational culture of Walmart. In your answer, you need to briefly explain the various layers of organisational culture, and then apply it to Walmart.
- Question 2 Make a judgement with regards to the absorptive capacity of Walmart, specifically refering to the actions of Lee Scott, ex-CEO and President of Walmart in 2005. In your answer, you need to do the following:
- 2.1 Define the concept absorptive capacity.
- 2.2 Make a judgement with regards to the absorptive capacity of Walmart based on the four dimensions that determine the absorptive capacity of an organisation.
- Question 3 Organisations respond to the challenges of responsibility and sustainability, either by taking on a position on or by moving through six levels of commitment.
- 3.1 Explain these levels of commitment. (12 marks of which 1 mark will be awarded for the identification of each level of commitment and 1 mark for the correct explanation of each level)
- 3.2 Identify Walmart’s level of commitment. (1 mark will be awarded for the correct identification of Walmart’s level of commitment)
- Question 4 In 2011, Walmart acquired a majority stake in Massmart in South Africa. The South African Commercial, Catering and Allied Workers’ Union (SACCAWU), a local labor union, feared the purchase would represent important job losses and declines in local manufacturing and production. The union opposed the transaction, arguing that the entrance of Walmart into South Africa’s retail market would cause the closure of local businesses and consequently the loss of many jobs due to the expected increase of imports by Walmart.
- 4.1 Explain the four types of strategic control.
- 4.2 Identify the type of strategic control applicable to South African businesses that were threatened by Walmart entering the local market. Substantiate your answer.
- Question 5 Since his appointment as CEO in February 2014, Doug McMillion introduced important changes in Walmart’s business strategy in various directions. 5.1 Explain the various types of strategic change.
- 5.2 Identify the type of strategic change applicable to the changes in Walmart’s business strategy introduced by Doug McMillion in 2014. Substantiate your answer.
- 5.3 Identify a best-practice model of planned change that could be used to implement the strategic changes identified by Doug McMillion. In your answer, you need to identify the model and briefly explain the steps in the change process.
- Question 6 Walmart is governed by an eleven-member board of directors elected annually by its shareholders.
- 6.1 Define the concept corporate governance.
- 6.2 The Institute of Directors in South Africa (IoDSA) established in July 1993 the King Committee on Corporate Governance. The King Committee produced the first King Report on Corporate Governance, which was published in November 1994. This Report, which has been revised three times, is recognised internationally as the most comprehensive publication embracing an inclusive approach to corporate governance. Explain the three value dimensions of the King Report on Corporate Governance.
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