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Watermelon Electronics is considering setting up a subsidiary in a developing country to manufacture some of its components - HSC - SSCE Business Studies - Question 23 - 2003 - Paper 1
Question 23
Watermelon Electronics is considering setting up a subsidiary in a developing country to manufacture some of its components. It could benefit from tax advantages and... show full transcript
Worked Solution & Example Answer:Watermelon Electronics is considering setting up a subsidiary in a developing country to manufacture some of its components - HSC - SSCE Business Studies - Question 23 - 2003 - Paper 1
Step 1
Outline ONE employment relations strategy that Watermelon Electronics could use to overcome the problem of a shortage of skilled labour.
Answer
One effective employment relations strategy that Watermelon Electronics could implement is to invest in training and development programs. By creating partnerships with local educational institutions, they can establish training courses that are tailored to the skills needed for the specific manufacturing processes. This approach not only helps to build a skilled workforce in the developing country but also enhances the company’s reputation as a beneficial contributor to the local economy.
Step 2
Compare TWO types of organisational structure that Watermelon Electronics may adopt to cater for this subsidiary.
Answer
Watermelon Electronics may consider a functional organisational structure and a matrix organisational structure for its subsidiary. In a functional structure, the company would organize its departments based on functions such as production, marketing, and finance, leading to increased specialization. This can streamline operations but may result in less flexibility in responding to project needs.
Conversely, a matrix structure combines both functional and project-based structures, bringing together employees from different departments for specific projects. This can improve collaboration and adaptability but may also introduce confusion regarding reporting lines and authority. By comparing these structures, it is evident that while a functional structure promotes specialization, a matrix structure enhances flexibility and responsiveness to changing demands.
Step 3
Evaluate a possible management response from Watermelon Electronics to a labour law variation that may exist in the developing country.
Answer
A possible management response to a variation in labour law, such as differing minimum wage requirements, could involve conducting a thorough assessment of local regulations and aligning their compensation practices accordingly. This assessment would involve understanding local labour standards and ensuring compliance while maintaining competitive pay.
Additionally, management could implement a proactive training session for staff on the local labour laws to ensure that all employees understand their rights and obligations. Consulting with legal experts in employment law could also be beneficial to navigate these differences effectively. Such a response not only ensures compliance but also fosters trust and goodwill among employees, promoting a positive workplace culture.