- 20 Marks
SCS – L3 – Q42 – International Financial Management
Assess advantages and challenges of Ayasco Banking Group offshoring back-office operations to South Afrara.
Question
(a) The Ayasco Banking Group recently reported that it was offshoring (moving) its back-office operations from Ghanara to South Afrara where it already has some significant operations. Centralizing most back-office operations in South Afrara is part of the Group’s plan to grow its international banking business. South Afrara is one of the fast-emerging economies.
According to an Ayasco Banking Group spokesperson, the move would involve cutting about 500 jobs from its operations in Ghanara, but generating a similar number of new jobs in South Afrara where it already employs 3,000 people.
Required:
(i) Critically assess the advantages and associated problems for Ayasco Banking Group of offshoring its back-office operations to an emerging country.
(b) Marketing activities within an organisation can be grouped broadly into four roles.
Explain TWO broad roles of marketing activities within an organization.
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