Qutstion 3 Damal Moter Company (DMC), wich had previousily been one of Malaptiar's moss lucrative comparies, was striving to stay afleat and faced its greasest loss in 2020 . Some of the reasons for the decline in profit were intemal probiems such as trecuert leadership changes, product derelopment and manufacturieg procedures, previcusly strong suts, had deteriorated over time. Communication was also impeded, and the very bureaucratic organicational oulture impacted the frum's effectiveness. As a resuk, to cestore the compary's giory, the DMC's leadership must tocus on feshoring specife competencies and teakering a cifture of eacelence and etrical behavior. In March 2021. the Blard of Dinectors (BCO) chose to add a new dyramic group member, fan Sri Simon Cha was appointed to be the new Criet Eapcutive Coffer (CEO). As a former axecutive vice-president of inge targelecommunications frem he was eepecied to use his experienon and leadership skits to restore customer satsisction and develop a strong comporate culture in DMC. Simon was com-itled to breaking DMChs dystunctional cuture in achieving the set of company goas. Simon sarted by ciosing plants, cutting jobt, taying off employees, hoeasing plark ubisation and producton levels, and refocusing on DMC branding. He also made stractural and procedural changes, especialy in top management. Simon had ful sappont from the top mastagement of DMC. incluting the charman and the nerm board members. To enhance the orgarisation's fong-6erm viabily, Simon fueds is buld a leamirg ofganisation that can adapt to change. foster creativily, and succeed in highy competive markets. Smon recognizes the importance of having everyone imolved in active learring and adapting CONFIDENTHL In addition, Smon did some senior execuste reorgansation. Smon charged the funcsonal organsation stryctiare to Strahegi Business Uni (S04) stuctare. Divions with similar products, markets. and technologes are grouped inss homogeneous urits that are under the SBU structuce to achieve some synergies. Diversilfation includes the objecthes to leverage coce competencies. share infrastructure, and enhance market power. Each of the corporation's SBUs operates as a protit centre. All these divisional hesds reported drectly to him. If meant Simen could coordinale \& control kay tanctions whilie implementing his strategy. Given the industry's high levet of competion, Simon beleves that achieving the sales target and proft will be diffoult uniess a strong sales team rewarding. and loyally strategy are developed. Apart from the high commission given to the highest sales for indwdual and team. other rewards saoh as non-cash awards weh as luxury travel, mobile phone, and iPad ace awarded 4 the 100 sales indivifual and teat each year. The sales team says that the trip and ofeer valuable product well be remembered lonper than the cash reward. Although Simon implemented changes in the colture, his metiods created confict with cenain management members. and some experienced employees quit the company. Aequired: a. Discuss three (3) benefits of implementsy the Strategic Business Unt (SBU) structure in DMC (10 marka) b. Criticise any three (3) downsides of the reward and incentive system developed by Tan Sid Simin Chis as the syslems can be powertul motvatris and apmeti-es may testut in undesirable octoomet. (10 marks) c. Propose to Tan Sri Simon chia the kree (3) key elements of buiding a kacring ceganisation to eshance the ieng-4erm viasilat of DMC. (10 marks) (Total: 30 marks) Qutstion 3 Damal Moter Company (DMC), wich had previousily been one of Malaptiar's moss lucrative comparies, was striving to stay afleat and faced its greasest loss in 2020 . Some of the reasons for the decline in profit were intemal probiems such as trecuert leadership changes, product derelopment and manufacturieg procedures, previcusly strong suts, had deteriorated over time. Communication was also impeded, and the very bureaucratic organicational oulture impacted the frum's effectiveness. As a resuk, to cestore the compary's giory, the DMC's leadership must tocus on feshoring specife competencies and teakering a cifture of eacelence and etrical behavior. In March 2021. the Blard of Dinectors (BCO) chose to add a new dyramic group member, fan Sri Simon Cha was appointed to be the new Criet Eapcutive Coffer (CEO). As a former axecutive vice-president of inge targelecommunications frem he was eepecied to use his experienon and leadership skits to restore customer satsisction and develop a strong comporate culture in DMC. Simon was com-itled to breaking DMChs dystunctional cuture in achieving the set of company goas. Simon sarted by ciosing plants, cutting jobt, taying off employees, hoeasing plark ubisation and producton levels, and refocusing on DMC branding. He also made stractural and procedural changes, especialy in top management. Simon had ful sappont from the top mastagement of DMC. incluting the charman and the nerm board members. To enhance the orgarisation's fong-6erm viabily, Simon fueds is buld a leamirg ofganisation that can adapt to change. foster creativily, and succeed in highy competive markets. Smon recognizes the importance of having everyone imolved in active learring and adapting CONFIDENTHL In addition, Smon did some senior execuste reorgansation. Smon charged the funcsonal organsation stryctiare to Strahegi Business Uni (S04) stuctare. Divions with similar products, markets. and technologes are grouped inss homogeneous urits that are under the SBU structuce to achieve some synergies. Diversilfation includes the objecthes to leverage coce competencies. share infrastructure, and enhance market power. Each of the corporation's SBUs operates as a protit centre. All these divisional hesds reported drectly to him. If meant Simen could coordinale \& control kay tanctions whilie implementing his strategy. Given the industry's high levet of competion, Simon beleves that achieving the sales target and proft will be diffoult uniess a strong sales team rewarding. and loyally strategy are developed. Apart from the high commission given to the highest sales for indwdual and team. other rewards saoh as non-cash awards weh as luxury travel, mobile phone, and iPad ace awarded 4 the 100 sales indivifual and teat each year. The sales team says that the trip and ofeer valuable product well be remembered lonper than the cash reward. Although Simon implemented changes in the colture, his metiods created confict with cenain management members. and some experienced employees quit the company. Aequired: a. Discuss three (3) benefits of implementsy the Strategic Business Unt (SBU) structure in DMC (10 marka) b. Criticise any three (3) downsides of the reward and incentive system developed by Tan Sid Simin Chis as the syslems can be powertul motvatris and apmeti-es may testut in undesirable octoomet. (10 marks) c. Propose to Tan Sri Simon chia the kree (3) key elements of buiding a kacring ceganisation to eshance the ieng-4erm viasilat of DMC. (10 marks) (Total: 30 marks)