MNO2602
Assignment 5 Semester 2 2024
Unique number:
Due Date: October 2024
Detailed solutions, explanations, workings
and references.
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, QUESTION 1
1.1 Social Environment of a Globalising Organisation (2 marks)
The social environment of a globalising organisation refers to the impact that the
organisation has on the social dynamics and relationships within its context, both
locally and globally. This includes how the organisation interacts with various
stakeholders, such as employees, customers, communities, and governments, in
different cultures and countries. Globalising organisations must navigate diverse
social norms, expectations, and practices, which can affect how they operate,
market their products, and engage with employees. For instance, they need to be
sensitive to cultural differences and social issues such as labour rights, gender
equality, and corporate social responsibility.
1.2 Difference Between Prevention, Appraisal, and Failure (PAF) Costs (3
marks)
• Prevention costs: These are the costs associated with activities designed
to prevent defects and quality issues before they occur. Examples include
quality training, process improvement, and preventive maintenance.
• Appraisal costs: These costs are incurred to detect defects or quality
issues during the production process. They include activities such as
inspection, testing, and audits to ensure products meet quality standards.
• Failure costs: These are the costs incurred when defects or quality issues
occur, and they are divided into internal and external failure costs. Internal
failure costs arise from defects found before the product reaches the
customer, such as scrap and rework costs, while external failure costs arise
when defects are found after the product has been delivered to the
customer, such as warranty claims and returns.
1.3 Forms of Power Shared by Leadership (5 marks)
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