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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 enhance recruitment efforts by offering incentives such as relocation packages, competitive salaries, and opportunities for professional development. This could involve setting up training programs that target local talent, thereby equipping potential employees with the necessary skills to meet the demands of the subsidiary. By collaborating with local educational institutions to design tailored training courses, Watermelon Electronics can create a skilled workforce that aligns with its operational needs.
Step 2
Compare TWO types of organisational structure that Watermelon Electronics may adopt to cater for this subsidiary.
Answer
Watermelon Electronics could adopt a functional organisational structure for the subsidiary, where employees are grouped based on their roles and expertise, leading to operational efficiency and clear lines of communication within departments. In contrast, they might also consider a matrix organisational structure, which allows for more flexibility by coordinating employees from different functions to work on specific projects, facilitating better collaboration and innovative problem-solving. While the functional structure focuses on specialization and depth of knowledge, the matrix structure emphasizes cross-functional teamwork and adaptability to project demands.
Step 3
Evaluate a possible management response from Watermelon Electronics to a labour law variation that may exist in the developing country.
Answer
Watermelon Electronics could respond to a labour law variation by first conducting a comprehensive analysis of the regulatory changes and their implications for operations. Engaging legal experts and compliance officers would ensure adherence to local laws while aligning with corporate policies. The company might also consider adopting Australian labour standards as a benchmark, ensuring that ethical practices in employee treatment, such as EEO and anti-discrimination policies, are maintained. Additionally, providing training for management regarding local labour laws and the legal framework would help mitigate risks associated with non-compliance, fostering a more sustainable and respectful workplace environment.