Answer to Question #211368 in Macroeconomics for Shawizy

Question

With clear illustrations, discuss challenges associated with offshoring and systematically highlight strategies necessary for assured venture growth in any business environment

Answer 1

Challenges associated with offshoring include:

Culture compatibility: The culture of different countries are not similar in terms of religion, social activities and languages and this pose a great challenge when offshoring.

Choosing the right location: The business location is of great importance since some countries have currency fluctuation which will not benefit the business.

Data security: Offshoring means the supplier should be allowed to access the data and this can lead to a breach in data security which could affect business and customers.

Loss of business knowledge: The business might lose its business knowledge considering that suppliers handle control.

The strategies necessary for assured venture growth in any business environment include:

Diversification: Entrepreneurs should venture into new fields like applying new technology as this will reduce the risks associated with the business.

Market development: Entrepreneurs should increase their market reach by accessing more geographical places.

Mergers: Entrepreneurs should consider combining their firms with competitors to reduce the competition.

Entrepreneurs should consider their product development by coming up with new products or developing the existing ones.