Expansion to Kava
The first impression that each researcher has after landing in Kava Island is that the island is unfavorable for business owing to its chaotic outlook. After conducting substantial research, the researcher comes to the conclusion that it is a favorable island for potential investment due to the lack of tapping by other foreign businesses (Williams, 2002). Although the cost of expanding Wal-Mart into the island will be high in the short-run, the long-term benefits should steer the company into investing in the island. This can be done through the articulation of two alternative solutions into the challenges plaguing the investment.
The first solution encompasses involving the government and other native organizations in the solving of the problems. This can be done through acquiring the assurance from the government that in the aftermath of any natural disaster, it would be in charge of the maintenance and repair of the infrastructure as it is the most vital (Molinski, 2007). In terms off the AIDS pandemic, the government should instill ideals that work towards eliminating the pandemic from the island because if its effects prevail, then the company will lack enough workers. The availability of land for expansion is another problem that can be solved by the government through the allocation of public land to the company as it will provide a lot of economic upgrading needed in addition to the expansive exporting economic development. The government should provide translators for the company.
The second solution encompasses the outsourcing of some level of operations to the island from the US. In this case, the qualified staff from the US will work hand-in-hand with the translators provided by the government in training the available work force. The country will never lack a work force because the 50% that is below 15 years will grow-up to attain the minimal age for working thus providing cheap labor. The staff from the US will work towards supplying the required expertise to satisfy the supply chains at all levels in the beginning of the functionality of the company but with the gaining of experience by the other native workers, the US staff will be released to go back to their country (Verma, 2009). The company can venture into investing in other industries such as tourism to increase their profit. The company should also invest in involving the natives in their production process to ensure that the products are according to the specifications of the consumer tastes.
Pros and Cons
The government will be enthusiastic to take-up the roles specified by the company as a means of encouraging the company to invest in the country (Williams, 2002). This is because it is in support of the company’s investment due to the economic gains that the presence of the company will translate to. Conversely, if the government has not managed to maintain the infrastructure so far, then it will not manage to maintain the infrastructure after being commissioned by the company. In the case of outsourcing the staff from the US, they might come to the country but with the lack of interpreters, they will not manage to train the natives. The workers may experience a diverse culture shock that may hinder their productivity.
However, working with the workers at the beginning of the implementation of the business will be advantageous because the operations will be carried out as required (Molinski, 2007). The training the workers will provide to the natives will go so far in instilling the discipline that is practiced by the workers of Wal-Mart. This is a clear indication that the business can invest in the island comfortably without focusing on the short-term losses it will make because the long-term gains it will obtain from the island will be substantial as compared to the loses.
Molinski, M. (2007). Small Business in Paradise: Working for Yourself in a Place You Love. Berkeley, CA: Nolo Press.
Verma, D. (2009). Decision-Making Style: Social and Creative Dimensions. New Delhi, ID: Global India Publications.
Williams, S. W. (2002). Making Better Business Decisions: Understanding and Improving Critical Thinking and Problem-Solving Skills. Thousand Oaks, CA: Sage Publications.