Decisions in Paradise Paper, Part I

Decisions in Paradise Paper, Part I

The south pacific island of Kava has the potential to be a true paradise. However, a recent span of natural disasters has left the island stripped of the pride and resilience it once had. The population is comprised of a majority of youth; nearly 50% of the people in Kava are under 15 years old. These young people need a refuge from the hardships of the island and a place that could enhance learning and community building opportunities. A new center for children would be ideal for the children and families of Kava alike. Child and Youth Facilities for a Better Community (CYFBC) offers a unique setting for young people. It will provide child care, tutors, a fitness facility, gymnasium, recreational activities and programs, and a communication lab. Next I will discuss the organizational and environmental obstacles, organizational processes, human resources decisions, and ethical commitment of CYFBC.

Organizational and Environmental Obstacles

Construction

The Kava community thrives on recourses such as petroleum, coffee, cocoa, spices, bananas, sugar, tourism, fishing, and natural gas, as well as inexpensive, quality labor. As such, the new facility could be constructed using a combination of local workers and skilled technicians, a beneficial boost for the economy of Kava as well as an inexpensive alternative to outsourcing labor. Construction needs for this project will last duration of approximately three to eight months.

Advertising and Competition

Currently, no business in Kava exist that can offer all the services of CYFBC. The cost of advertising is very affordable because Kava is fairly new to the concept of commercial advertising. The options available are radio and newspaper advertisements, commercials, flyers, brochures, and special promotions. Each option is viable for the local community; however, the best results would be obtained if during the initial stages of construction the commercials and flyers were circulated. This would be efficient because the demographics of Kava are primarily young people, and the majority of them could be impacted if a commercial was aired or a flyer was distributed.

After the construction is complete, the CYFBC could open to offer free services for the first full two weeks of operation. This generosity would appeal to the community, particularly the employed members as it shows that CYFBC is kind and sympathetic to the community and desires business from every member equally. Additionally, each person, young and old, who visit the facility upon opening will experience all it has to offer free of charge. This will entice them to return even after the two weeks have elapsed, boosting customers by informing them of the services offered.

Obstacles and Risks

The business community of Kava is up-and-coming. They have recently established an incentive for new business that has lowered the costs of obtaining licenses to encourage new business. The current price is 10 percent of the United States average of $200 annually, or $20, a fixed price for the duration of operation of a business as specified in the contract.

One significant concern for the community and for CYFBC is the potential for natural disasters. The past has shown that the probability of such occurrences is likely to occur every four to six months. For this reason, construction must be on a strict timeline, and of the best quality. Once construction is complete, the facility must be a safe, strong, and durable place for the people of Kava to frequent.

Organizational Processes

Costs and Profitability

As with any business, it will take money to make money. The design of the facility is still in the initial stages; however, the construction and materials are projected to cost about $6.5 million. According to local surveys conducted to asses the interest in the organizations future offerings, this initial investment should be cash-positive by the third year of operation. The local community will be the main source of revenue, as they will use the services of CYFBC on a daily basis; yet another promising source of profit stems from tourism. Despite the hardships and grief occasionally experienced by the inhabitants of Kava, the island is still a gorgeous and exiting location for tourists. Tourist will be anxious to use the many of the services provided by CYFBC such as gymnasium and fitness facilities, the communication center, and even temporary child care. As CYFBC offers services to the inhabitants of Kava that are not temporary in nature and benefit the community, specifically the children and youth, the long term profitability