GROUP MEMBER:

KONG YEE SHENG (128479)

LOH HUI NI (128508)
LYDIA JONG WAN SHIUAN (128515)
TAN JING YI (128579)
TEY WEN HUI (128609)

Chapter 2
The Ethical Dimension #2

Think about the last time that a person treated you unethically or you observed someone else
being treated unethically, and then answer these questions:

1. What was the issue? Why do you think that person acted unethically?

I being treated unethically when doing part time in one supermarket, the employee
answer me rudely and scold me when I asked her question about where the place to throw the
boxes to recycle. I think that person acted unethically because of her temper personality
which related to the personal ethic.

2. What prompted them to behave in an unethical fashion?

 Personal Ethics
- The ethics obtained from such sources as family and friends, places of worship,
education, professional training and organizations of all kinds. If they had learnt a
bad ethic from the environment surrounding them, definitely they will apply these
ethics in the life.

 Outside Pressure
- The employee is pressure in the workplace with the reasons of top-heavy, and
bureaucratized organization. Or they faced uncertainty issues with their finance or
social problem.

3. Was the decision maker aware that he or she was acting unethically?

No, she was not aware that she was acting unethically.

4. What was the outcome?

The important of creating ethical culture in an organization and social

Chapter 3
Organisation Theory in Action
Practicing Organizational Theory

1. Analyse the pros and cons of each of the types of strategies alliance (long term
contract, networks, minority ownerships, and joint ventures) as you means of managing
the environment.

Long-term contracts
Pros: Long term contract reduce costs by sharing resources or spreading the risk associated
with activities such as marketing and R&D.

Cons: Long term contract are the most informal kind of strategic alliance, because the only
connection between the involved parties is the agreement. Besides, there is no ties link the
organizations apart from the agreement set forth in the contract

Network
Pros: A network is a group that coordinates activities via contract. A network is more formal
than a contract because more ties connect members who share competences, such as R&D
skills, with partners. The partner can use those skills to increase efficiency and reduce the
core organization’s costs and size.

Cons: The partners need to share its manufacturing, marketing or R&D skill with its partner.
A network might create competencies in future. Network also can produce indirect costs by
blocking the opportunity of cooperating with rival businesses.

Minority ownership
Pros: Minority ownership occurs when organizations buy a stake in each other, forming a
more formal alliance. The Japanese keiretsu is a group of organizations, each of which owns
shares in the other organizations and works to further group interests. For example, Toyota is
a capital keiretsu with a minority stake in suppliers; Toyota works with suppliers to improve
quality. At the Fuyo keiretsu, Fuji Bank is the centre with members such as Nissan, Hitachi,
and Canon. Members have other companies with minority ownership in suppliers.

Cons: The ownership of the less dominant organizational will be overtake. Interdependencies
of the organization might be a problem if the organization has negative reputation

Joint ventures
Pros: Joint ventures are formal strategic alliances among two or more companies to establish
and share ownership in a new business. Participants can pool distinctive competences, design
a new structure, keep parent companies small, and reduce the difficulty of managing parent
company interdependencies.

Cons: The share ownership might create conflict between the involved organizations. This
can be critical if business secrets are included in this knowledge. Agreements can protect
these secrets but the partner might not be willing to stick to such an agreement.
2. Based on this analysis, which one would you choose to maximize your chance of
securing a stable niche in the soda market?

Based on the analysis, we will choose long term contract as our strategy to maximize the
chance of securing a stable niche in the soda market. Long term contract is an informal
contract between two or more organisation which aims to reduce costs by sharing resources
or by sharing the risk of research and development, marketing, construction and other
activities. As our company lack of funds for quick expansion, thus making a long term
contract with other organisation can help our company grow quickly. For example, we can
develop a written contract to specify the procedure for sharing resources or information in
order to expand and grow our company.