Decisions in Paradise- Part I - Essay Example

This paper discusses the business environment in Kava by analyzing the issues, problems, stakeholders, and environmental factors. Kava has a topography and geographic location that makes it susceptible to natural disasters such as tidal waves, tsunamis, typhoons, hurricanes, floods, fires, volcanic eruptions, and earthquakes (Decisions in Paradise: How to Be, or Not to Be, 2009). There are other issues in Kava. The population is at high risk for Avian Flu and the population faces an HIV / AIDS epidemic.

The island is susceptible to petroleum skills is an undesirable business risk due to the potential ecological of the entire island. The region is has a high risk for both domestic and foreign terrorist attacks. The costs of importing raw materials into the island are high due to the use of maritime transportation expenses. From a business perspective expand in Kava requires a lot of planning. The company has to invest a lot of money to expand its presence in Kava. Based on the fact that Alex had to perform two jobs which included the receptionist position is an indicator that in the past the company has been reluctant to invest thousands of dollars in Kava.

This project is going to be worth millions, thus the firm has to be prepared for a large capital investment commitment. The economy of Kava is struggling. If the company hires locals it should include a medical plan as a fringe benefit. Due to proliferation of infectious diseases and HIV / AIDS the corporate medical plan premiums are going to be high. Also over 50% of the population is below 15 years of age, thus they are ineligible for work. The corporation has plans to expand its operation in Kava.

The problem is that Kava has one of the highest overall risks in the world for natural disasters. It also has many environmental, health, and social issues. The firm is receiving political pressure to