Decisions in Paradise Business

Decisions in Paradise Business:

Part I

Not all tropical destinations are viewed as paradise. One such place is the island of Kava. Kava is an island country located in the South Pacific that is going through difficult times. Capital is determining how it will play a role in rebuilding this disaster stricken place. This essay will focus on identifying the problems Kava faces, define strategic objectives and criteria as well as evaluate the effects of Capital possible involvement in Kava.

Background

The island of Kava is a country in need of many things. The majority of people located in Kava are under the age of 15 years old. Kava is an ethnic melting pot of indigenous South Pacific tribes, oriental, African, French, Spanish, and Americans. 50% of the people in Kava are of indigenous religions with a mixture of English, Spanish and French dividing up the remaining amount.

The economy of Kava is a mixture of commodity and service. Petroleum, coffee, cocoa, spices, bananas, sugar, fishing and natural gas are their leading exportable commodities with tourism being their primary source of service revenue.

Kava is faced with many potential natural disasters ranging from tidal waves, typhoons, tornados, floods, fires, volcanic eruptions, and earthquakes. They also face dangers from HIV, petroleum spills, avian flu and terrorism.

Problems

Kava’s major problems are most noted in their workforce supply, revenue diversification and social services.

Kava is dependent on a young workforce. “This overwhelmingly youthful age structure can exacerbate existing economic and governance issues, as has occurred in developing countries across sub-Saharan Africa and the Middle East” (Robertson, 2007, ¶ 12). Kava will require immigrants to fill positions that require some skills not found in their young population.

The island of Kava has a resource driven revenue stream that is depended on exporting goods. The exported items have could drive up costs for local inhabitants and increase economic risk when disaster occurs. A diversification of revenue toward service will assist in increasing economic prosperity without draining or potentially destroying the environment.

The poor social services of Kava are evidenced in their inability to handle the effects of disasters. This impairs the life span of Kava’s indigenous population and has a negative perception effect on outside involvement.

Objective

Capital mission in Kava is to bring prosperity to the people who live in Kava and to create a viable economic environment that encourages responsible growth and strengthens social services. The specific plan of Capital will be to bring in foreign investment for tourism and human resources, improve government and community organizational processes and encourage ethical decision-making.

Criteria

To ensure company objectives are monitored and completed, Capital will use the following indicators to determine effectiveness.

Gross domestic product calculations in total revenue and tourism revenue will be calculated to review progress.

Quality