Decisions in Paradise Part III

The company in Kava should expand its presence by hiring as much of the local labor as possible . One of the advantages of setting up business in the island country is that it has a lot of inexpensive , quality labor Therefore it would enable the management to implement the strategy of cost minimization . Implementation of this strategy would also generate employment opportunities for the local people and thus enhance the company 's standing with the local government . This is the most important factor affecting decision implementation . Given the high occurrence of natural

disasters , it is a critical success factor for the company in Kava to maintain good relations with the government in to approve of concessions that might enhance the company 's profitability . For example the management might request the government to provide tax breaks that will maximize the company 's profitability initially . The company will also require the government 's approval to transfer manpower from its head office . Therefore the most important factor that affects decision implementation is maintaining positive relations with the local government agencies

Nik has been assigned the job of expanding the company 's presence in the island country . Given the high occurrence of natural disasters , it will be capital intensive for the company to build its operations there . The proposed solution to this problem is to hire as much of the local labor as possible . This will reduce the cost of operations as the local labor is inexpensive . In addition to this strategy , the...