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Red Flash is an Australian manufacturer of a range of sportswear - HSC - SSCE Business Studies - Question 24 - 2002 - Paper 1
Question 24
Red Flash is an Australian manufacturer of a range of sportswear. It is intending to expand overseas by establishing a subsidiary in a developing country. Managemen... show full transcript
Worked Solution & Example Answer:Red Flash is an Australian manufacturer of a range of sportswear - HSC - SSCE Business Studies - Question 24 - 2002 - Paper 1
Step 1
Identify TWO skills of management needed to implement this business proposal.
Answer
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Communication Skills: Effective communication is essential for management to convey the company’s goals and work collaboratively with the local workforce and stakeholders in the developing country.
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Cultural Awareness: Understanding and respecting the local culture is crucial for successful integration and management of employees in a different country.
Step 2
Discuss a possible conflict of interest between stakeholders in relation to the decision to locate in a developing country.
Answer
The decision to establish operations in a developing country may lead to conflicts of interest among various stakeholders. For instance, local employees may have concerns about job security and fair wages compared to their counterparts in Australia, resulting in dissatisfaction and potential unrest.
Additionally, shareholders may prioritize cost savings from lower wages and operating expenses, while community stakeholders may be worried about the long-term impact on local employment and ethical labor practices.
These contrasting interests highlight the need for management to balance profit objectives with social responsibility, ensuring that all stakeholders' perspectives are taken into account.