Challenges and Solutions in Outsourcing Post-Sale Services
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This document discusses the challenges faced by companies when outsourcing post-sale services and provides effective solutions. It includes answers to coursework questions on outsourcing.
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M92work Assignment Coursework assignment answer template Answer to Question 1 – Learning Outcome 1 (10 marks) Part (a) Inthe given question WSP PLC has outsourced its post-sale and claim handling services to a third party service provider named FTN PLC which is located outside the UK. The three challenges faced by the WSP PLC on outsourcing the services are: The Confidentiality of the customer information may get leaked. Care must be taken while outsourcing the services as the data protection law confine the transfer of customer data to foreign nation (Blackburn, Hart, and Wainwright, 2013). It became difficult to comprehend the customer conduct and gratification, if the communication between the business and outsourced company is insufficient. If the FTN PLC the outsourced company get stuck in some financial problem then it will be difficult for WSP PLC to search the alternative provider in short span of time. Part (b) To improve the service of the FTN PLC, the WSP PLC should set a performance benchmark for the outsource company to achieve (Thompson, Strickland, and Gamble, 2015). A regular monitoring of the company service delivery and customer complaint handing should be done. Customer feedback should be given importance. The duties of the WSP should be clearly stated. Answer to Question 2 – Learning Outcome 2 (20 marks) Part (a) May 20181
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Coursework assignment answer template M92work Assignment In the given question it can be seen that the company ORI PLC is facing many challenges in achieving its growth objective. The company is having high turnover rate of the employee. The reasons for this is that the board of the company is involved in making day-to- day decision of the organization. Rather the role of the board of director is to set strategy, determining the company policy, approving the company report and accounts, overseeing the risk management process and many more. So the day to day decision making is the part of the manager and supervisor and not the board of director. The company should divide the work based on the role and responsibility like supervisor should perform his accountability by reviewing the company business operation. Manager work is to make plan to improve company performance and customer satisfaction. Part (b) The four challenges faced by the company in promoting management style. The company has to spend extensive efforts in setting strategic business plan like setting objective, identifying the ways by which the objective can be achieved (Noe, et.al 2017). Challenges in creating the appropriate organizational structure. Difficulties in allocating management duties and responsibilities to senior manager. Difficulty in agreeing and allocating budget to different department. Lack of expertise among the employee and the manager, since from last 20 years the board is the sole person who were taking decision in every aspect of the business, so the employee did not get the right kind of exposure of handling and managing the business risk. May 20182
Coursework assignment answer template M92work Assignment Part (c) For implementing the new changes in the organization, the following challenges may be faced by the staff. Lack of know how The staff may face the crisis of the technical and managerial skills, which are required after implementation of the changes. Reduced in the Customer service while implementing new change When the new changes is announced, staff involve in developing their business and operational skill, they devote their most time in learning the requirement of new change. On the other hand they fail to provide the optimum service to the customer as required. Answer to Question 3 – Learning Outcome 3 (20 marks) Part (a) The corporate governance requirement that need to be addressed by the RKU Ltd, before the share before the shares are listed on the LSE (Noe, Hollenbeck, and Gerhart, 2017). Sustaining a sound structure of internal control by evaluating how a company recognizes and manages risk. Comprehending board reports to confirm that they present a balanced and reasonable viewpoint. Confirming the directors are up to date with new accounting and auditing issues. E.g. international accounting standards. May 20183
Coursework assignment answer template M92work Assignment Assessingthattheboardreceivesthecorrectcommunicationsandinformation required from the external auditors. Part (b) Significant action that the RKU Ltd must take to address the corporate governance requirement. Reviewing the company internal financial controls. Monitoring and reviewing the effectiveness of the company’s internal audit function. Reviewing and monitoring the external auditor independence and objectivity. Developing and monitoring the external auditor’s independence and objectivity and the effectiveness of the audit process. Answer to Question 4 – Learning Outcome 4 (20 marks) Part (a) The three common function that will be affected in the PFO PLC by the issue highlighted in the MGA are given below. Failure to achieve the business objectives. If the business employee are less experienced than this means that they are not performing as per the business requirement and ultimately will not able to achieve the business objective. Decrease in the customer service fulfillment. May 20184
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Coursework assignment answer template M92work Assignment If the staff of the company is less exposed to business management or operation, then this Means that staff will not able to handle the complex business operation and management, as a result it affects the customer service. Difficulty in managing the accounts of the large number of the underwriters. The MGA is becoming more wide spread in the UK. This means that MGA is undertaking the other activities of an insurer such as marketing, selling and administration. Company need to manage the accounts of the different agents, recording the various payment and the other necessary communication (Nosair, and Bouffard, 2015). Part (b) The terms and condition of the delegated responsibility should be clear, concise. Auditing and monitoring The insurer should frequently carryout audit during the year to ensure the terms and Procedure of the binding authority. The insurer should employ an external auditor who will visit the office of the cover holder and authenticate the files of the client. This is done to confirm that the premium and cover providing are in accordance with the binding authority. Monitoring the Underwriting performance The underwriting team will assess the performance of the corporate written in Contradiction of the business plan. Certain times daily agendas of the new corporate written and policies transformed, together with the claim reported, will be provided to the class underwriters and heads of department (Arefifar, 2013).The performance the department is conversed with the strategy team to see if they are any nonconformity from the complete underwriting objectives and to assess whether the approach needs to be revised and updated. May 20185
Coursework assignment answer template M92work Assignment Answer to Question 5 – Learning Outcome 5 (30 marks) Part (a) Evaluation of the existing class of business. From the analysis of the existing class of business it can be seen that business class B is having the highest risk of profitability. As class B has earned a negative premium of 1 million Euro, which has increased the risk of profitability (Nosair, and Bouffard, 2015). Working formula Premiumearned Gross written premium - claim paid - claim outstanding- Expenses. Gross premium percentage Percentage Earned / Gross written premium Part (b) Evaluation of the Prospective class of business May 20186
Coursework assignment answer template M92work Assignment From the analysis of the prospective class of business it can be seen that both the business class X & Y is the greatest risk to profitability. Both of them provide a negative return of premium with respect to gross written premium. Working formula Premiumearned Gross written premium - claim paid - claim outstanding- Expenses. Gross premium percentage Percentage Earned / Gross written premium Part (c) The two risk of comparing the classes of business identified in the both the table are. Provision for losses and loss adjustment The provision for the gross loss should be disclosed in the balances sheet and the amount expected to be recoverable under reinsurance agreement should be recognized in the balance sheet as an assets (Friend, and Jessop, 2013). The provision of the losses are estimated ultimate cost of all claim incurred but not settled at the date of the balance sheet, whether reported or not. The incurred but not reported claim are particularly to estimate and can only be estimated in the light of the company experience. Deferred acquisition costs This comprises the cost of acquiring insurance policies that have been written during the financial year but will earned in a subsequent year. Therefore the portion of the acquisition costs are attributable to the unearned premiums (Nosair, and Bouffard, 2015). May 20187
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Coursework assignment answer template M92work Assignment Answer to Question 6 – Learning Outcome 6 (10 marks) Part (a) As per the requirement of the true and fair view, which states that the financial statement of account of an entity should represent the true and fair view, meaning they should be prepared as per the accounting standard and comply with the requirement of the company act 2006 (Nosair, and Bouffard, 2015). On the contrary this requirement is not applicable in the case of natural disaster like earth quake. Where it is not possible to comply the requirement of the IFRS and Company act. Part (b) In order to resolve the potential conflict the insurer is required to take the following steps. Providing the suitable disclosure even when not explicitly essential by the accounting standards (Mi, 2015). Certifying that substantial information is not hidden by the irrelevant or inappropriate disclosures. Establishingaccountingguidelinesforobjectsnotexplicitlyenclosedbythe accounting standards or where they are abstruse. Making verdict, for example about assessment, intended at giving a true and fair view. Not providing the comprehensive accounting instructions as a justification for poor accounting. Standing back at the conclusion of the accounting procedure and ensuring the accounts in general do provide a ‘true and fair’ opinion. May 20188
Coursework assignment answer template M92work Assignment Question 7 – Learning Outcome 7 (20 marks) Gross profit ratio refer to a profitability ratio that shows the liaison between the gross profit and the total sales net revenue. It is a popular tool to evaluate the operational performance of the business. The ratio is computed by dividing the gross profit figure by the net revenue (Ward 2016). Debt to assets ratio is also known as the leverage ratio that measures the amount of the total assets that are financed by the creditors instead of the investors. It shows what percentage of the assets is funded by the borrowing compared with the percentage of resources that are funded by the investors. May 20189
Coursework assignment answer template M92work Assignment The current ratio is a liquidity ratio that calculate whether or not a firm has sufficient resources to meet its short term requirement. It relates a firm current assets to current liability. This ratio is the sign of the firm liquidity ( ). Debt to capital ratio is the portion of the company financial leverage. This ratio is computed by the taking the company interest bearing debt, together short term and the long term obligations and dividing it by the total capital. Total capital refers to the all interest bearing obligation plus shareholder equity. Part (b) Based on the above calculation, it can be evaluated that the firm MC PLC is a strong financial company. The company is having low debt, high profitability ratio, the company is appropriately utilizing the assets to pay off its liability. Part (c) The financial concern which need to discuss are following (Nosair, and Bouffard, 2015). May 201810
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Coursework assignment answer template M92work Assignment Whether the company is preparing its financial statement based on the IFRS and the relevant accounting standard. Whether the company is comply with all the statuary requirement imposed by the law. Whether the company policy, has been designed with a view of the welfare of the employee. Answer to Question 8 – Learning Outcome 8 (10 marks) Part (a) The risk appetite of the firm can be evaluated by examining the statement of risk that is acceptable for the company to bear (Johnston and Bate, 2013). Part (b) The company can maintain their credit rating, by using the following factor Comply with the Financial requirement This applies to all firms and considers key quantitative requirement, including own funds. Governance and supervision Thisincorporateaneffectiveriskmanagementsystemandprospectiverisk identification through the own risk and solvency assessment (Tuomikangas, and Kaipia, 2014). Reporting and disclosure Insurers are required to publish details of the risks facing them, capital adequacy and risk management. May 201811
Coursework assignment answer template M92work Assignment Answer to Question 9 – Across more than one Learning Outcome (30 marks) Part (a) From the analysis of the above information following, data can be extracted in order to assess the best performing broker. PA Ltd in the year 2017 has earned the maximum return per client which 28208.55. This earning is the highest among the other broker. Part (b) Choice of broker based on the non-financial information. May 201812
Coursework assignment answer template M92work Assignment Based on the analysis of the above information its can be interpreted that, PA Ltd 2017 & 2016 is having the highest Client satisfaction rate of 90%. Whereas the YS Ltd is having the highest client retention ratio of about 87% and 88% in the 2016 and 2017. Based on the above data, it can concluded that the PA Ltd 2016 is the best broker (Tuomikangas, N. and Kaipia, R., 2014). Part (c) The two strategic action taken to improve the performance of the broker are: Proper reporting and disclosure requirement The broker should provide proper disclosure about their client about their client satisfaction level. Economy and industry risk Management and corporate strategy Operating performance May 201813
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Coursework assignment answer template M92work Assignment Investment Capital adequacy Liquidity Financial flexibility. Use of the internal model The insurance company should increase internal model to assist them in a range of the decision such as Pricing Portfolio target return Reinsurance purchasing Investment selection Dividend decisions Capital adequacy Economic and Industry risk Answer to Question 10 – Across more than one Learning Outcome (30 marks) Part (a) The three significant actions that are needed to align with the corporate strategy. The company should develop a strategic vision of where the company needs to head and what its future product, customer, Market, technology focus should be (Bruzzone, 2013). May 201814
Coursework assignment answer template M92work Assignment Setting objectives and using them as the yard stick for measuring the company performance and progress. Crafting a strategy to achieve the desired outcomes and move the company along the strategic course that management. Part (b) For measuring the success of the company following parameter has been described. Profitability Productivity Competitive position Employee development Employee retention Technological leadership Public responsibility Staffing the organization with the needed skill. Part (c) Three significant operating changes which are significant for the business plan. Motivating the people of the organization to pursue the target objective energetically Tying the rewards and objective directly to the performance and good strategic execution Creating a company culture and work climate conducive to the successful strategy Exerting the internal leadership needed to drive implementation forward and keep improving strategy execution (Blackburn, Hart, and Wainwright, 2013). When the May 201815
Coursework assignment answer template M92work Assignment organization encounters stumbling blocks or weakness, management has to see that they are addressed and rectified quickly. Part (d) Factor measuring the operational success rate of the organization Creating separate division, each representing a distinct business Each division would house its functional hierarchy. Division manager would be given responsibility for managing day to day operation. A small corporate office would determine the long strategic direction of the firm and exercise over all financial control over the semi- autonomous divisions (Ward, 2016). Grouping the business on SBU lines helps the firm in strategic planning by removing the vagueness and confusion generally seen in grouping businesses, they are assigned accordingly. Keeping theorganizationresponsiveto changingconditions,alertfor thenew opportunities bubbling with the innovative ideas and ahead of the rivals in developing competitively valuable competencies Pursingcorrectiveactiontoimprovestrategyexecutionandoverallstrategic performance. Managing the human capital effectively Sustaining the high performance over time Being willing to make candid, courageous, yet pragmatic decisions. Seeking feedback through face to face communication Recognizing the need for change May 201816
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Coursework assignment answer template M92work Assignment Creating a shared vision to manage the change Institutionalize the change References Blackburn, R.A., Hart, M. and Wainwright, T., 2013. Small business performance: business, strategyandowner-managercharacteristics.Journalofsmallbusinessandenterprise development,20(1), pp.8-27. Thompson, A., Strickland, A.J. and Gamble, J., 2015.Crafting and executing strategy: Concepts and readings. McGraw-Hill Education. Johnston, R.E. and Bate, J.D., 2013.The power of strategy innovation: a new way of linking creativity and strategic planning to discover great business opportunities. Amacom. Noe,R.A.,Hollenbeck,J.R.,Gerhart,B.andWright,P.M.,2017.Humanresource management: Gaining a competitive advantage. New York, NY: McGraw-Hill Education. Abraham, S., 2013. Will business model innovation replace strategic analysis?.Strategy & Leadership,41(2), pp.31-38. Ward, J., 2016.Keeping the family business healthy: How to plan for continuing growth, profitability, and family leadership. Springer. May 201817
Coursework assignment answer template M92work Assignment Mitchelmore, S. and Rowley, J., 2013. Entrepreneurial competencies of women entrepreneurs pursuing business growth.Journal of small business and enterprise development,20(1), pp.125-142. Mi, J., 2015. Blue ocean strategy.Wiley Encyclopedia of Management, pp.1-1. Kumar, D., 2016.Enterprise growth strategy: vision, planning and execution. Routledge. Luo, F., Meng, K., Dong, Z.Y., Zheng, Y., Chen, Y. and Wong, K.P., 2015. Coordinated operational planning for wind farm with battery energy storage system.IEEE Transactions on Sustainable Energy,6(1), pp.253-262. Arefifar, S.A., Mohamed, Y.A.R.I. and El-Fouly, T.H., 2013. Comprehensive operational planningframeworkforself-healingcontrolactionsinsmartdistributiongrids.IEEE Transactions on Power Systems,28(4), pp.4192-4200. Rieffel, E.G., Venturelli, D., O’Gorman, B., Do, M.B., Prystay, E.M. and Smelyanskiy, V.N., 2015. A case study in programming a quantum annealer for hard operational planning problems.Quantum Information Processing,14(1), pp.1-36. Nosair, H. and Bouffard, F., 2015. Flexibility envelopes for power system operational planning.IEEE Transactions on Sustainable Energy,6(3), pp.800-809. Friend,J.andJessop,N.,2013.LocalGovernmentandStrategicChoice(Routledge Revivals):AnOperationalResearchApproachtotheProcessesofPublicPlanning. Routledge. Luo, F., Dong, Z.Y., Meng, K., Qiu, J., Yang, J. and Wong, K.P., 2016. Short-term operationalplanningframeworkforvirtualpowerplantswithhighrenewable penetrations.IET Renewable Power Generation,10(5), pp.623-633. May 201818
Coursework assignment answer template M92work Assignment Tuomikangas, N. and Kaipia, R., 2014. A coordination framework for sales and operations planning(S&OP):Synthesisfromtheliterature.InternationalJournalofProduction Economics,154, pp.243-262. Luo, F., Dong, Z.Y., Meng, K., Wen, J., Wang, H. and Zhao, J., 2017. An operational planningframeworkforlarge-scalethermostaticallycontrolledloaddispatch.IEEE Transactions on Industrial Informatics,13(1), pp.217-227. Bruzzone, A.G., 2013. Intelligent agent-based simulation for supporting operational planning in country reconstruction.International Journal of Simulation and Process Modelling,8(2-3), pp.145-159. May 201819
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