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Transcription of this question: 3.KA is a public limited company that designs, manufactures and sells air conditioners.KA’s unionized employees are motivated and efficient despite not being involved in anydecision making. However, they are resistant to change.The market and competition for air conditioners are growing rapidly. KA operates at fullcapacity but stock turnover has slowed.Primary market research revealed that:consumers do not differentiate KA air conditioners from those of its competitors. Allproducts are perceived as medium price and medium qualityKA’s customer service is rated as poor• customers demand energy-efficient products using ecologically sustainable productionmethods.To exploit opportunities and overcome weaknesses and threats, KA’s management hasdecided to redesign its products so that they are energy efficient. KA is considering twooptions:Option’ : Implement lean production methods, which includes investing in ecologicallysustainable machines that will increase capacity by 10%. Total quality management(TQM) will also be implemented. However, the financial manager is worried about KA’sability to meet high initial costs. The forecasted payback period is three years andaverage rate of return (ARR) is 4Option 2: Outsource the production to QS, a company known for its reliability and highcapacity to produce excellent quality air conditioners using cradle to cradle manufacturingprinciples. However, QS refuses to sign an exclusive long-term contract with KA, insistinginstead on renegotiating the contract every two years. KA will have to close its productionfacility and will use the cost savings to improve customer service and to reposition anddifferentiate its air conditioners.Employees have heard rumours of both options and fear for their jobs. Strike action is beingconsidered.(a)(b)(c)(d)Define the term public limited company.With reference to QS, explain two features of cradle to cradle manufacturing.Explain two possible human resource strategies that KA management could use toreduce employees’ resistance to change.Evaluate the two options that KA is considering.[2][10]

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