MNO2602
MAY JUNE PORTFOLIO
DUE DATE: 26 MAY 2026
, MNO2602 MAY JUNE PORTFOLIO 2026
DUE 26 MAY 2026
Question 1 Learning units 1 to 6 [42 marks]
By globalising, organisations considerably change their physical environment, the task
environment and the social environment. Explain the social environment of a globalising
organisation.
1.1 Explain the social environment of a globalising organisation.
The social environment refers to the cultural factors a firm encounters when globalising,
including language, business customs, customer preferences, and patterns of
communication (Foster & Gardner, 2023, p. 51; MNO2602 Study Guide, 2025, p. 25).
1.2 Describe the difference between prevention, appraisal and failure (PAF) costs.
Prevention costs are associated with preventing defects from occurring e.g. training,
quality planning) (Foster & Gardner, 2023, p. 95.
Appraisal costs are the direct costs of measuring and evaluating quality e.g.
inspection, testing) (Foster & Gardner, 2023, p. 96.
Failure costs are incurred when products fail to meet requirements, divided into
internal failure (e.g., scrap, rework) and external failure (e.g., warranty, repairs)
(Foster & Gardner, 2023, p. 96; MNO2602 TL 201, p. 8).
1.3 Briefly explain the various forms of power leadership must share. (5)
MAY JUNE PORTFOLIO
DUE DATE: 26 MAY 2026
, MNO2602 MAY JUNE PORTFOLIO 2026
DUE 26 MAY 2026
Question 1 Learning units 1 to 6 [42 marks]
By globalising, organisations considerably change their physical environment, the task
environment and the social environment. Explain the social environment of a globalising
organisation.
1.1 Explain the social environment of a globalising organisation.
The social environment refers to the cultural factors a firm encounters when globalising,
including language, business customs, customer preferences, and patterns of
communication (Foster & Gardner, 2023, p. 51; MNO2602 Study Guide, 2025, p. 25).
1.2 Describe the difference between prevention, appraisal and failure (PAF) costs.
Prevention costs are associated with preventing defects from occurring e.g. training,
quality planning) (Foster & Gardner, 2023, p. 95.
Appraisal costs are the direct costs of measuring and evaluating quality e.g.
inspection, testing) (Foster & Gardner, 2023, p. 96.
Failure costs are incurred when products fail to meet requirements, divided into
internal failure (e.g., scrap, rework) and external failure (e.g., warranty, repairs)
(Foster & Gardner, 2023, p. 96; MNO2602 TL 201, p. 8).
1.3 Briefly explain the various forms of power leadership must share. (5)
