Business Decision Making - Essay Example

Kava offers a sea of opportunity in the ocean of calamity. In fact, some of the most innovative and strategic planning efforts have come during or after calamitous times. As of now, Kava having withstood a series of calamities awaits rehabilitation and reconstruction work. Since Kava is ill-equipped with the know-how and technology to go about the vast reconstruction work. The priorities of the chief of our company are just right for the moment. The government of Kava wants investment that serves the dual purpose of social responsibility and profiteering. However, with both important functionaries, the officials of Kava and chief of the company having concurrence on going ahead with the decision implementation is not enough to get going. The company needs to convince the Board and the employee representatives of exploring opportunities in the Pacific. Besides, meeting obligatory requirements of making investment in a foreign country, the company needs the assent of all its stake-holders. However, countries like Kava that has least competitive environment and a broad road open for development and reconstruction is too lucrative to be ignored. The presence of the company may it be bare minimum at the movement and good knowledge of the country, its social and geographical conditions, economy and people, their tradition with Alex gives our company a leading edge to begin from. First of all Kava needs a Disaster Management System and Disaster Warning system in place. The initiative requires the concerted working of the government, international agencies, and private businesses. All investment and development carried out without disaster mitigation and management plan in place would go down the drain if another natural disaster strikes Kava. The Plan has to be prioritized according to the record of previous occurrences. Since this involves meteorological and seismic data of the past, the government of Kava needs to act with utmost haste. Our company needs to make a Disaster Management Committee that pushes forward the idea to put the system in place amongst the government functionaries. It involves liaising with the government, institutions and companies active in Kava. Since the entire cost of setting up a disaster warning and management in place could be enormous, it should be divided amongst all the companies that ready to set-up profit making units at Kava. On the other hand our company may face stiff opposition from stakeholders, especially the shareholders and the employees who do not see much sense in investing in a country that is high-risk prone to vagaries of nature and is distantly located. On the other hand the company under the leadership of can needs to form a steering committee that outline the long-term benefits of relocating some of its manufacturing facility to Kava. Low cost of production including availability of raw material and energy sources and chances of expansion into south-east Asia and China can be cited as chief reasons of foraying into the Pacific. After taking up the key decisions, the core-group of the company has to decide upon the operations the company will take up in Kava. The deciding factor will essentially be the expertise of the company and the most profit making areas. These operations should also hold bring social and economic benefits to the locals of Kava, besides giving them employment. In keeping with the ideology of Bill, the company has the best opportunities in reconstruction work. Whereas Kava would get infrastructural support the company can sign long-term lease agreements for collection of tolls or revenue sharing. Since 50% of the population of Kava is below 15-years, the best opportunity for the company would be to invest in education. The population data also show that not enough labor would be available in Kava. This will practically involve hiring a lot of people from back-home or the relocation of employees from back home. The presence of people with American origin, who chose to settle in Kava will provide ethnic support base to the form strategic core groups in program planning and implementation since they are more in know of the local conditions. In fact some of them should be immediately hired to help Alex and me to go about doing the spade-work. Since Kava has abundance of natural products like spices, bananas, coffee, cocoa, and sugar and holds prospects of tourism, the company can make long term plans to produce them locally employing local population and send it across supply chains all over the world. The local farmers can also be motivated to take up their natural and organic farming that fetches greater remuneration for the local population. Thus the company can open up new market vistas and novel products. Our company can also invest in food-processing and buy out-sourced farm products. Fisheries can also be developed as an option. However, it needs to be seen and evaluated as to how much diversity, the company can introduce in its activity. Kava doesn’t hold much opportunity for development of manufacturing facilities as there is a shortage of minerals and iron-ore in the Pacific region. But production of petroleum products does hold a potential. Our company can invite oil exploration and drilling corporation from Europe and the Middle-east and help the government of Kava to make agreements for long term exploration and drilling contracts with them. In light of the business liaising our company can make third party profit-sharing agreements with the Kava government and drilling companies. Apart from this, the company has to make a decision of investing in other areas like health and education. The location of the country in makes it prone to a lot of diseases. Our company can give institutional and financial support for improvement of health facilities in Kava. This will not only assure befriending of local population but also help for long-retrenchment of the company in Kava. Through dissemination of health facilities and education the company will be able to pay back to the people of Kava for the benefits it draws from working in Kava. Ethical Perspectives It is important for us to view the above illustrated decisions and formulation of plans from an ethical perspective. The foremost question that stares the management in the face is its strategic plan of profiteering from a country ravaged by natural calamities. However, this can be offset by the company immediately taking up rehabilitation and relief work. It is important that the company stays away from hiring child labor. The company can assure employment to maximum number of local families with the help of faith-based organizations that can identify the neediest families. Besides, employment the company should can help the devastated island country with making some direct contribution to the development of Kava. A significant proportion of the profits made by utilization of resources of Kava should be put back into the economy to bolster its financial position. The optimized utilization of the resources of Kava will help develop the country and put it onto the road to integration of global economy so that it no longer remains a country in isolation fighting nature and hostile elements. Kava operations will also open up the flood-gates for the company to expand into Asia-Pacific region and increase its profits by better utilization of resources available across the world. The company need not downsize but will have to relocate some of its staff. The entry of our company into Kava should not be seen as mere economic exploitation of the island nation. On the other hand, our company with its strong American base can help Kava to integrate more vigorously with the globalizing economy. For our company it can serve as an instrumental central location to spread wings into Far-east and Asian countries. This makes a win-win scenario for both the people of Kava and stakeholders of our company. Read More