Tag (SQ): Offshoring

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SCS – L3 – Q42 – International Financial Management

Assess advantages and challenges of Ayasco Banking Group offshoring back-office operations to South Afrara.

(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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SCS – L3 – Q11 – Strategy Implementation

Discuss the importance of effective communication and strategic leadership in successful strategy implementation.

(a) During strategy implementation, important management issues need to be reviewed for their appropriateness for the new strategy. Many organizations fail to achieve their strategic objectives not because they do not develop the right strategies but because many issues are not resolved during the implementation. They may not have the right organizational structure, a fitting culture, an efficient leadership while communication may be poor.

Required:

Discuss the importance of each of the following in successful strategy implementation:

(i) Effective communication

(ii) Strategic leadership                                                                                                                                                                                                                                                                                                                                                                                                                                                 (b)

You have been consulted by the CEO of Vision Designs, a designing and publishing company, to clarify some strategic management terminologies to aid him to finish a proposal for consideration by the company’s board of directors.

Required:

Using relevant examples, explain the following types of modular organization structures.

(i) Outsourcing

(ii) Offshoring

(iii) Shared servicing

(c) Explain TWO limitations that are associated with offshoring.

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