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2007 Wolters-Noordhoff bv Groningen/Houten

Chapter 2 Answers

Statements 1 correct 2 incorrect 3 incorrect 4 incorrect 5 correct 6 correct 7 correct 8 correct 9 incorrect 10 correct Theory Questions 1 a The most significant difference is that stakeholders have a direct influence on organisations while environmental factors have more of an indirect effect.

b To a certain extent, organisations can exert some influence on stakeholders. They are however less able to have such an effect on environmental factors. Environmental factors will therefore lead to certain consequences that an organisation needs to be constantly aware of. 2 Examples of changes in organisational behaviour include: the development of products that have a less damaging effect on the environment; the development of environmentally friendly production methods; increased recycling of spare parts and raw materials. Thanks to technological developments we can see steady improvements in production methods as well as increasing innovation in goods and services. Competition stimulates breakthroughs in technological innovation and as a result, the economy gains a boost. This stronger position is a result of the following factors inside Europe: a reduction in purchase costs and sale prices due to increased volume of business; pressure to increase efficiency in the areas of organisation, production and distribution, as a result of the sale price moving closer to the cost price of many products; faster adjustments and more specialisation due to the increased ease of price comparisons between different European Union countries; the growth of innovation caused by increased interaction in a large and dynamic internal market; in the long term, European companies are gaining a significantly stronger foothold in markets outside the European Union. The five societal themes of interest to sustainable development are: social cultural political ecological economic.

Organisation and Management

2007 Wolters-Noordhoff bv Groningen/Houten

Practical Assignment The following aspects should be included in the answer: It is important that the student demonstrates their ability to apply theory from the book as well as using material from other sources in carrying out this activity. This task uses the whole of chapter 2. It is possible to select just stakeholders or surrounding factors. Also important is the way in which the student substantiates and justifies their arguments. This assignment should be submitted in a concise format. Mini case study a The main reasons for Siemens wanting to enter the sustainable energy market are: Siemens has the know-how and the products. It is an important growth market in which Siemens can boost their turnover and profits.

b The introduction of these products contributes to a cleaner environment. It is therefore reasonable to conclude that this is a form of sustainable business. c Stakeholders who are likely to have an influence on Siemens product development strategy include: financiers, who require an increase in turnover and profit; clients, who increasingly ask for certain products; governments, who stimulate companies to develop particular products with a combination of regulations and subsidies; environmental groups, who ensure that consumers and companies are aware of the features of the various energy sources; the media, who constantly search for information; their competitors, who can influence the speed of development for (new) products and their pricing strategies etc. Environmental factors also have an influence on the product strategy of Siemens. A few examples of these are: Technological factors: developments in technology determine what is possible for the new generation of products. Political factors: politics has an effect in areas such as investment subsidies. E-mail case This e-mail case is linked to both political as well as cultural aspects. The textbook deals with these subjects in the following sections: 2.3.4 Economic factors 2.3.5 Political factors 2.3.6 Social factors Information about most countries in the world can be found at the following website: https://www.cia.gov/cia/publications/factbook/index.html

Organisation and Management