It is evident that the company is committed to establishing a greater presence in Kava. It has chosen to view the challenges that come with this decision not as obstacles but rather as opportunities not only for growth but also for discovery and implementation of revolutionary solutions to common problems. In order to achieve this, the company will have and in deed has to a large extent been guided by virtue more than a sense of right or wrong nor good or evil.
The company in its analysis of the situation has come to a conclusion there is a lot to be gained by not only maintaining but in deed establishing a greater presence in kava. After brainstorming and critically looking at the pros and cons of investment in Kava through a well thought out and weighted decision was arrived at to increase the company’s presence. This decision was greatly influenced by very critical factors central to the company’s operations. To begin with, the company management is totally committed to the success of this move (Hanssens, Parsons & Schultz, 2003).
The founder is personally driving the move given his and by extension the company’s commitment to doing what is right. This
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Though the company has its shortcomings and is continually striving to improve, it is its belief-one that has been passed down from the founder that one can not keep taking more from Kava if the company does not give more back. He should take the lead in motivating the staff coming to man the expanded operations. Kava should also look at using local staff in its expanded operations since they will not have to be paid risk allowance for working it the island. Business is not done in places where it is convenient, safe and secure for the operations.
It is the sometimes risky locations that a business will get higher profits as a result of the challenges that come with doing business in the location. By expanding its operations in Kava, the company will surely gain more economically since the raw material will not have to be transported long distances for processing. This means it cuts the cost of production while at the same time transferring knowledge to the locals who will be hired to man the expanded operations.
This particular decision of using local for the expanded operations should mitigate against incoming staff demanding to be paid money to relocate in addition to risk allowance given the situation on the ground. The government of Kava is giving all the right signals to help sway the decision by the company to expand its operations. To the government the expansion is good for the citizens since it will give them an opportunity to earn an income. This is in addition to the extra income directly to the government through taxation.
The government is also aware that it is the culture of business nowadays to engage in social responsibilities. With this in mind, the government of Kava has chosen to influence if not hasten the decision of the company to expand its operations locally by offering not only concession but also guarantee accessibility of a reliable and enabling operating environment. To achieve the expanded operation in Kava, the company will have to invest in additional office space, equipment and manpower.
The company will e challenged to find ready space in which to house the expanded operations. However land on which the company can build the required office space to specifications should not be a challenge. This will allow the company to have purpose built offices that it can strive to make a safe as possible from the natural disasters that strike from time to time. In this the company will have an ample supply of cheap labor-relative to what the company would have paid another part of the world.
Additionally, given that the residents of Kava are pretty well educated, the company will not have to bring all staff to run the operations from abroad. It could engage locals only have to bring in key managers and this only for a short time so as they can pass on the company’s organizational culture. After some time, the operations can be run by locals. The decision to expand operations by the company in Kava are guided and based more on ethics than any other reason. Given the amount of resources in Kava, it makes economic sense to have operations in Kava.
However, to base the decision to operate in Kava on economics alone, the dangers and risks of having expanded operations could be viewed as not justifying the investment. However the different stakeholders will have to be consulted and or their view considered in the decision making process (Sternberg, Roediger & Halpern, 2007). The shareholders of the company given its history and the effort expended by the founder to ensure the ethics are central to operations should find this investment acceptable.
In as much it comes with the inherent danger that accrues with having operations in Kava, it is an acceptable danger and the cost is manageable within the company’s operations. The employees of the company especially those operation in other locations which would be considered safer than Kava could have an issue with relocating to man the expanded operations. However, this expansion offers the company an opportunity to increase the number of locals in within its local operations.
For the locals, the expansion of the operations by the company gives them additional job opportunities not to mention the feeling that the company is true to them. This will make them more loyal to the company in giving their services but also purchasing the finished the final products of the company. Conclusion: The company is faced with a challenging decision. However given the underlying strong ethical beliefs that guide the company coupled with the gains both implicit and explicit to be gained by the expansion of operations by the company, this is a decision that it should find easy to implement.
Given the different challenges that might raise to oppose the decision to establish a greater presence in Kava, the influence of the founder has a great bearing in swaying and converting any pessimists to the decision. References: Hanssens, D. M. , Parsons, L. J & Schultz, R. L (2003). Market Response Models: Econometric and Time Series Analysis, Kluwer Academic Publishers, Norwell, MA. Sternberg, R. J. , Roediger, H. L & Halpern, D. F (2007). Critical Thinking in Psychology, Cambridge University Press, Cambridge, CB.