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Heather owns a financial planning business with offices in four countries, including Australia - HSC - SSCE Business Studies - Question 23 - 2016 - Paper 1
Question 23
Heather owns a financial planning business with offices in four countries, including Australia. (a) Heather outsources the cleaning of her Sydney office. Explain O... show full transcript
Worked Solution & Example Answer:Heather owns a financial planning business with offices in four countries, including Australia - HSC - SSCE Business Studies - Question 23 - 2016 - Paper 1
Step 1
Explain ONE advantage of this strategy.
Answer
One advantage of outsourcing the cleaning of the Sydney office is cost reduction. By outsourcing, Heather only needs to hire a cleaning service for a few hours a week, resulting in savings on employment costs like benefits, taxes, and training. This allows her to allocate resources to more critical aspects of her financial planning business.
Step 2
Explain TWO disadvantages of this strategy.
Answer
One disadvantage of outsourcing financial record keeping is the potential loss of control over important business processes. Heather may not have day-to-day oversight, which could lead to errors or lack of compliance with regulatory standards, impacting her business negatively.
Another disadvantage is the risk of miscommunication. Outsourcing can introduce cultural misunderstandings and language barriers, which may complicate the accuracy of record keeping and lead to significant financial discrepancies.
Step 3
What are the advantages of this for Heather’s business?
Answer
A diverse and culturally competent workforce offers several advantages for Heather’s business.
Firstly, it enriches the workplace with varied perspectives and ideas, enhancing creativity and innovation in problem-solving.
Secondly, a culturally competent workforce can lead to improved client relationships, as employees can better understand and cater to the needs of a diverse clientele, fostering trust and loyalty.