06 Do you think Zoff should change its objectives? Justify your answer. [6]

[BASEL Moderator]

Zoff is a large engineering company. It manufactures a wide range of products from bicycles to washing machines, mainly using batch production methods. The company has grown rapidly but its profits are falling. Following the dismissal of the Managing Director, the company has announced that a new Managing Director will be recruited internally. A spokesperson said: ‘Our objectives have to change. Rather than growth, we will focus on improving quality whilst at the same time try to improve our competitiveness.’

06 Do you think Zoff should change its objectives? Justify your answer. [6]

Possible KN Points:
• Increase in competition
• Achieved its growth plan
• Poor management
• Different people have different objectives
• Financial issues
• Improved reputation