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JKL Company, a retailer, has introduced a policy through which all its divisions must employ PPP Company, a
specialist human resources company, fo recruit and select executives.
MNO Company offers medical serices through autonomous divisions in four regions. t has set up a unt through
which all divisions will meet their data processing requirements.
POR Company manufactures cosmetics and has set up a training division which will provide services across all of its
departments, paid for through a transfer pricing system
Which of the following utilise(s) the shared services organisation approach?
For me only MNO What do you think about JKL and POR?
Shared services are departments within companies that service other departments or divisions.
JKL uses a nominated external supplier as this is not shared services.
It would seem to me that both MNO and PQR display shared services. Payment by one department to another is no bar on shared services existing.