Task 1- Sky’s the Limit’s future

|Changes in Business Environment |Organizational Responses |Management Responses |
|Increase in global competition is changing |Sky’s the limit should have a flatter |Sky’s the limit should follow activity-based |
|the business environment as trade barriers |organizational structure in order to adjust |costing system because it will result in more|
|fall and manufacturing cost of balloons will |as per changing business environment. For |accurate product cost, labor cost etc. This |
|decrease due to increase in product demand, |e.g. Sky’s the limit needs to establish |will also result in one rate for cost |
|hence attracting new competitors entering New|separate departments for manufacturing |allocation for each manufacturing overhead |
|Zealand market. |customized and standard balloons. Also in |activity. |
| |order to maintain high quality of balloons, a| |
| |separate quality control unit should be | |
| |established within the factory. | |
|Deregulation of service sectors such as |Training and development of existing staff |Performance measurement system is needed for |
|banks, transportation, communication, tourism|members, to introduce incentive schemes to |Sky’s the limit, this will help them to |
|etc will benefit Sky’s the limit as a company|motivate them. Market awareness within the |monitor operations and management costs and |
|because it can utilize its