Bmgt 7086 - Kava Island

Assignment1: Kava Island

BMGT 7086

October 25, 2015

Kava Island

Decisions in paradise has various issues to be addressed. The paper deals with problems related to the establishment of call center in Kava. The various issues and problems related to the expansion plan are analyzed. Finally, analysis and evaluation of alternatives is performed and recommendations are provided.

This case is related to Kava Island, situated in South Pacific. The company is considering having a strong presence in the region. But the present condition of the island is not promising. The Kava Island is suffering from various natural disasters such as fires, earthquakes, floods, tidal waves and terrorism. About 50% of the total population on the island is under the age of 15. The main source of revenue for the government and local people is sugar, fishing, coffee, spices, petroleum, natural gas and low cost labor. The population of Kava has ethnic mix of African, Spanish, French and indigenous South pacific tribes. After the World War II, huge number of Americans settled into the country. There is disorder in the region because people do not speak the same language. Religions followed in the country are Buddhist, Islamic, Christian and main languages include French, English, Spanish and other indigenous languages (Business Scenario).

Issues:

The decision making process of the organization would be affected by the following issues:

- High occurrence of natural disasters

- Problems of petrol spills and terrorism

- Under-developed resources

- Weak infrastructural facilities for industrial development

- Diverse languages are spoken and different religious culture.

- Unemployment problem

- Majority of population is underage.

The country suffers from the frequent occurrence of the natural disasters which is a major obstacle in the growth of the economy. There is also a risk of terrorist attacks from within and outside the region. Another significant problem is that the AIDS disease is prevalent in the region.

The government organizations, faith based groups and community based groups support new businesses in a country. These organizations support the economy and promote new businesses. The region provides several advantages to the businesses. There is abundant supply of cheap and skilled labor in the region. Energy resources such as natural gas and petroleum prove to be highly beneficial for the business operations. Though there are different languages, but it has positive aspect and will be helpful. The island needs powerful business which can improve the overall economic condition. The company is positive for the business plan and would make its best efforts to make it highly successful (Business Scenario).

The government of the country is expecting positive results if the company settles their business in the region. It is sure that the establishment of business will promote the economy and the local community. But there are many challenges for the company which will make it a difficult venture.

Stakeholders play a vital role in the success of an organization. I am sure that above description must have provided adequate information regarding the decision making process of the organization and the factors affecting it. As per the requirement, I am providing the Identification and Evaluation of Alternatives; along with the recommendations and action plan:

Stakeholder Perspectives:

The stakeholder groups of the company are employees, management and the shareholders (Pierce & Robinson, 2004). Shareholders find it as a good opportunity and expect positive outcomes. The decision of introducing business in Kava has several ethical dilemmas. The country's 50 percent of the population is under the age of 15. Employing this underage population poses various legal and ethical issues before the company. It will also become difficult for the company to maintain a pool of talented professionals. The human resources departments have to focus upon the recruitment sources and develop a plan so that is able to work in the interest of the government.

Identification and Evaluation of Alternatives:

The main objective of the project is providing quality products at the reasonable cost. It believes in customer satisfaction through innovation and better services. The company has two alternatives to expand its business on the Kava Island.

First alternative is to enter into collaboration with the government. The government would provide support in every manner and in return company would help in building the infrastructural facilities. The company can also provide assistance and resources in government plans aimed at the promotion of tourism sector. This alternative may have disadvantage in the form of government control and interference in the company. The main advantage is government interest in the project which is favorable for the viewpoint of the company.