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Introdution To Management - Case Study Example

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Outsourcing business to other locations has emerged as a popular competitive strategy for large and small companies in order to meet the ever increasing demands from customers for high quality products in large numbers at minimum costs. In addition, emerging technologies…
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Introdution To Management
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Introdution To Management

Download file to see previous pages... d with a business opting for operating from another location; more often these include low cost, higher quality, lower risk, lower employee turnover, higher profits, to bring about a change in the way business is done, etc. The parent company’s goals can be varied, and accordingly the goals and objectives of outsourced company are laid (Bangeman, 2005).
Exactly for these reasons, Gail Lee, the managing director of Melbourne’s fashion retailer, Leethal Fashion Accessories, offshored some of its business to India; this included creation of ready-to-wear garments based on Australian designs that were sent by Leethal Fashion Accessories and also imported jewelry to be sold in local departmental stores. Besides the reasons for this business offshoring, LFA had to face some issues with respect to receiving the completed products on time due to delay in transport. Other issues were caused due to language and cultural barriers, which sometimes lead to misinterpretations and misunderstanding in the business dealing. These issues lower the confidence of Australian entrepreneurs in Indian business systems; yet, the huge difference in labour costs tends to outweigh losses caused by other issues (Hatch, 2006).
Indian economy is diverse, and ranges from traditional village farming to modern manufacturing and services. The contribution of services sector is said to be the maximum to the growth of India’s economy, which indicates availability of surplus labour. Statistics indicate that major portion of the services is provided by the English-speaking educated people in the field of Information Technology in the form of software services export (Rushton & Walker, 2007). Another major contributor to the economy is the small-scale industry segment which plays a pivotal role in employment generation with low capital investment. Estimates indicate that over 18 million people are employed in this industrial segment (John, M.S, 2002). Cottage industries are mostly run by ...Download file to see next pagesRead More
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