Custom «Decisions in Business Scenario» Essay Paper Sample

Decisions in Business Scenario

In this business scenario, the firm for which Nik works for is faced with two issues. The first issue is to develop a way of establishing a strong presence at Kava, and the second issue is how to develop way in which the firm can give back to the Kava community. In reference to the first issue, the company recognizes that, Kava offers a great opportunity for it to develop since many goods and services produced at Kava have a significant impact to it and people in the company’s home country. However, establishing a strong present at Kava means that the company will need to develop a way of minimizing the numerous risks present at Kava Island, due to high prevalence of natural disasters.

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Due to the location of the island, the area usually experiences tsunamis, hurricanes, tornadoes, floods, volcanic eruptions, and earthquakes, among other disasters. These disasters have a potential of affecting the operations of any business firm with its operations in this area. Possible effects from these disasters may include destruction of properties and stock items, and lack of skilled personnel due fear of individuals to reside in disaster prone areas. Conversely, the area has a lot of products and services, which are of great importance to the company. Therefore, the area offers a good business opportunity to the company, in terms of availability of raw materials, as well as inexpensive quality labor. The problem, which is the main issue, is the way the company will tap the resources at Kava, while minimizing the risks in this disaster-prone area.

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In reference to the second issue, the company values commitment in doing what is right. The company’s founder believes that the company cannot continue benefiting from Kava, without showing appreciation to the people of Kava. The company’s founder believes that for the company to continue gaining from Kava, it has to develop ways of giving back more to the people of Kava. Generally, the company will have to find a balance between establishing strong business presence at Kava, and providing more benefits to Kava community.

Paradise business scenario requires analysis of the issues facing the concerned company, and developing solutions to the identified issues. Success in situation analysis starts with problem formulation (Problem Formulation, n.d.). Problem formulation involves breakdown of a given situation into specific elements such as mission areas, goals, objectives, problem causes and their effects, and possible solutions. While formulating a problem, the organizing team involved in the process may encounter either external or internal forces, which may have an impact on the process. Internal forces are those forces, which can be controlled by the organization (Gregory, 2010). They may include organizational culture, leadership style, or decision-making style. An organization can adjust these forces, to suit the situation at hand. On the other hand, external forces are those aspects that are beyond the control of an organization (Gregory, 2010). They may include government regulations, trends in the labor market, market changes (example, entrance of a competitor), or climatic changes. When formulating a problem, individuals involved in the process should adopt flexibility to allow easier incorporation of changes brought by external forces in the future.

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The most important aspect of problem formulation is identification of stakeholders in a given situation, and their possible effects by the situation or solutions identified in the situation (Problem Formulation, n.d.). In paradise business scenario, stakeholders include the people of Kava, the government of Kava, suppliers and producers of products and services available at Kava, the company’s customers, and its employees. The people of Kava are very important stakeholders in paradise business scenario. This is because, most obviously, they are the owners of the resources found at Kava Island. For instance, Chris indicates that the island has plenty of inexpensive quality labor. The people of Kava supply this labor, thus they own labor. Therefore, without taking into consideration the likely impacts of the company’s decision on the people of Kava, the company risks losing the inexpensive quality labor at Kava.

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Furthermore, Chris indicates that the island produces quite a number of products such as coffee, spices, and sugar, among others, which are important to the company. Even though Nik indicates that everything in Kava looks disorganized, it is likely that the island has quite a number of business players involved in production and supply of the aforementioned goods. Therefore, as Nik and Chris try to develop a strategy of establishing strong business presence at Kava, they will have to analyze how these business players undertake their activities at Kava. This will be necessary in developing supply and distribution networks, as well as sourcing business partners for the sake of establishing a market share. Similarly, Nik and Chris will have to consider business laws and regulations that govern business operations at Kava.

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In many instances, governments are involved in formulating and enforcing business laws and regulations. It will therefore be important for Nik and Chris to consider government regulations and laws that affect business operations at Kava. The company will have to comply with these laws otherwise, the government of Kava might deny it an operating license/permit on the island. In reference to the employees, the company will have to consider developing a method of attracting and retaining employees on the island. Since the island is prone to many disasters, many individuals may be reluctant to accept job offers in firms located in the area. The company can manage to attract competent and high skilled employees to its new establishment at Kava by offering competitive remuneration and employment benefits such as insurance benefits, pension schemes, sick-off, and paid leave, among other benefits. In addition, the company can offer relocation allowance to employees from outside Kava.

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