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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 ... 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
Cost Efficiency: Outsourcing the cleaning of the Sydney office allows Heather to reduce her overall costs. By hiring an external cleaning service, she can avoid the expenses related to full-time employee benefits, such as health insurance and paid leave. Additionally, this means that she only needs to pay for cleaning services as needed, which can lead to significant savings for the business.
Step 2
Explain TWO disadvantages of this strategy
Answer
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Loss of Control: Outsourcing financial record keeping can lead to a loss of oversight. Heather may not have daily control over the activities of the external service providers, which can result in issues such as inaccuracies in record keeping or the mishandling of sensitive information.
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Communication Challenges: Working with an outsourced service may introduce language barriers and cultural misunderstandings. This can further complicate the financial record-keeping process, potentially leading to miscommunication regarding important details or changes in procedures.
Step 3
What are the advantages of this for Heather’s business?
Answer
Enhanced Innovation: A diverse and culturally competent workforce allows for a wider range of ideas and perspectives, fostering innovation within the business. By leveraging diverse viewpoints, Heather can create more tailored solutions for her clients, enhancing client satisfaction and potentially increasing her market reach. This diversity can also improve team collaboration and problem-solving capabilities, leading to better overall business performance.