Instructions: Using the Ferrari Case Study below, answer the following questions using evidence from the case study.

Question $1$: Analyze how the Ferrari company implements one motivation theory to enhance employee performance.

$(5$ marks$)$

Question $2$: Analyze how the Ferrari company implements one theory of positive psychology to enhance employee wellbeing.

$(5$ marks$)$

Question $3$: Analyze how the Ferrari company implements two strategies that enhance employee self esteem and fosters a growth mindset.

$(5$ marks$)$

Ferrari is an elite Italian automobile company that sold $7,200$ sports cars in $2011$ with a price tag of$,$ on average, $200,000$ each.

That year the company had record sales, with revenues of $2\mathrm{.}2$ billion, up $17$ percent from $2010,$ and profits of $310$ million, up $9\mathrm{.}5$ percent. Forty million euros of that came from brand licensing of products which ranged from sporty Puma clothing and shoes for racing fans, to luxury products such as Vertu mobile phones, to electronic games for various devices with Sony, Microsoft and Electronic Arts.

Ferrari had four main goals: hire the best people, make the best products, extend the company's global reach, and be victorious in Formula Onc the most prestigious racing series, where Ferrari could boast unprecedented success since the Formula started in

$1950.$ The company did not market its product; its marketing came from its Formula One victories.

Ferrari owners enjoyed a close relationship with the company through a wide range of exclusive services and activities they could take part in$,$ from driving courses to rallies. Ferrari organized special events, such as a three$-$day driving tour through Italy. Owners could fly or ship their cars by boat to Italy$-$

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far away as Japan to be part of this elite event.

Purpose. Ferrari employees had a sense of purpose because they were part of something special and elite. Ferrari's view was that it did not simply sell cars, it sold dreams. As the consistent winner in Formula One, its employees knew they were part of a winning team. The company employed the best people, so the winning team feeling went beyond the race track to the company itself.

After work employees could go home in their red Ferrari work overalls, which was a status symbol for some.

Autonomy. Ferrari gave employees a feeling of autonomy by helping them plan their careers from the moment they were hired until their last day on the job. One of the first things new hires did was sit down with a manager to figure out where they wanted to go$.$ They were encouraged to do what they were good at and to figure out in which areas they wanted to grow. Younger employees were assigned a mentor to guide them in making the best career decisions. Older workers were not put out to pasture but became mentors.

Collaboration. Ferrari worked hard to build a company that was employee driven, rather than the other way around. Salaries were slightly higher than at similar companies, but above all Ferrari provided important benefits. For example, the company helped its employees get the best interest rate possible on a first mortgage by directly negotiating with banks. The company also provided inexpensive flights for employees with family outside the arca to get home for the weekends, and free summer camp and school books for children of employees. Employees had an $8$ a$.$m$.$ to S p$.$m$.$ work day with a one$-$hour lunch in the factory restaurant, and the company had a sustainable environment with trees and vegetation inside and outside the building to create a pleasant atmosphere. There was also a doctor's oflice at the headquarters with free medical facilities for employees and their families.

Excellence. Ferrari designed multiple ways to drive employees toward excellence, including a yearly competition among its $1,500$ blue$-$collar workers $($mostly skilled workers involved in all the production processes$)$ to come up with the best idea to improve the process or the productI. The prize was a weekend for two away in another city like Vienna, or a similar type of prize. Ferrari Director of Communications Stefano Lai said the employees did not enter the contest simply because of the prize, but because it gave them a sense of ownership and pride because they were helping the company to succeed. Employees also played an important role in keeping the accident rate low through a robust safety reporting system. In addition, the first public showing of a new Ferrari model was inside the company for employees only to show them the fruits of their labor before everyone else in the world got to see the car.

The Downsides of Happiness. A potential downside of happiness at Ferrari was that employees could put so much energy and emotion into their ink hecance they falt nart of comethine caecial