overview of decisions in paradise business scenerio

Running head : PARADISE BUSINESS SCENARIO

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Chris Morales wants his company to establish a greater presence in Kava He feels that the island has a lot of potential . He also feels a moral obligation to plough back some of the profits he has made back into the community that produced it . My first impression as I got off the plane is that the island was a chaotic place to live and do business in . It is plagued by a number of natural disasters like hurricanes

, volcanic eruptions , earthquakes and tornadoes . The damage it does to the infrastructure causes great damage in the aftermath . The island faces issues of security with foreign and local terrorism being a major threat to stability . The working population above the legal age is less than 50 . However they are of good quality and are relatively inexpensive The economy is powered by various resources including fishing agriculture , tourism and petroleum products . The government is faced with developmental and social issues like unemployment , poverty and infrastructural problems . The cost of increasing the company 's presence in Kava will be expensive . The cost of training labor , developing production capabilities and building up a supply chain will gobble up a lot of money . However if the dynamics are right the company will greatly benefit in the long term

Investment decisions in Kava will be guided by the need to outsource some of the operations from the US to Kava . The cheap labor resource will enable the company to produce at a lower cost and thus improve its competitive edge (Gaudio , Louis M . and Myron G . Myers . 1996 . The challenge will be the urgent need to increase the availability of raw materials so that they installed capacity for production is not underutilized . This may need the expansion of current office facilities and staff to handle all levels in the supply chain organization Diversification into new fields like tourism , agriculture , security and the petroleum industry can open up wider areas of investment (Bezrukova K . et al . 2002 ) Other challenges that the company will need to deal with is the state of the infrastructure . When communication lines are down and roads are impassable , then the cost of doing business rises . This will be more evident in the aftermath of natural disasters . The company will need to be assured that the repair and maintenance of infrastructure will be a key priority of the government . The labor force will need to be trained to be able to handle the necessary machinery that will be installed . The issue of expatriates must be discussed with the government and any hurdles cleared . The policy of some governments discourages the employment of foreigners and in some sensitive operations locals may not be competent enough to handle the tasks involved . Regarding the AIDS problem , the government and local aid agencies need to actively engage themselves in trying to contain the disease before it wipes off a good percentage of the working force which is in...