Analyse the industrial conflict issues that may arise as a result of a business’s chosen methods of international expansion. - HSC - SSCE Business Studies - Question 28 - 2010 - Paper 1

When a business chooses to outsource jobs to foreign countries to reduce costs, conflicts may arise due to job security concerns for local employees. The resulting layoffs can lead to negative sentiments among the workforce, potentially causing protests or strikes. Additionally, outsourcing often raises ethical concerns regarding labor practices in other countries, which can further fuel discontent.

Mergers and acquisitions can lead to significant industrial conflicts due to the clash of corporate cultures and the potential for employee redundancies. Employees may feel insecure about their positions, leading to resistance to change. If not managed well, this can create a toxic work environment, resulting in lower morale and productivity.

Franchising can lead to conflicts if the franchisees feel restricted by the franchisor’s operational policies. Disagreements regarding profit-sharing, marketing strategies, or adherence to brand standards can create a rift, leading to disputes that impact operational effectiveness and employee satisfaction.