Decisions in Paradise Business Scenario

Decisions in Paradise Business Scenario

Aerospace Manufacturing Inc (AMI) desires to expand its global presents and sees an opportunity in Kava, a small island in the South Pacific. Kava has had many disasters in the recent history. To most companies it may seem a bad decision to bring a manufacturing plant to a country that has both economic and natural disaster problems. However, it is an opportunity to help not only Kava's people, but to help AMI to become more global competitive.

Kava has several positive demographics to offer. Using the fishbone tool to sort through the positives has been helpful. Kava has over 50% of its population under the age of 15 years of age. The education levels needs to be reviewed, but it is not a deterrent to the work that AMI wants to bring to Kava. With such a large population of young students there is an opportunity to introduce math and science stronger presence in the schools.

Kava is known for its inexpensive quality labor. AMI is known for developing and managing very effective, as well as highly efficient, organizational structure and processes. This is an opportunity that the government of Kava, the CEO of AMI and the people of Kava can all benefit.

Building an infrastructure to withstand natural disaster is required to withstand the cyclones and hurricanes which occur regularly. Working with the United Nations Development Programme, AMIs can help to stabilize Kava. According Clark (2010) at a conference held in February 10, 2010 by the United Nations Development Programme "Five Pacific Island national economies are estimated to have contracted in 2009, mostly because the global recession has eroded their income from exports, tourism, and remittances. In Tonga, for example, the value of remittances fell by fourteen per cent in the year ending June 2009.

As global economies around the world contracted and asset prices declined, some Pacific countries also experienced reductions in investment income and capital losses from trust funds and sovereign wealth funds, adding to the fiscal squeeze upon them.

Behind the facts and figures about falling exports and remittances are the human stories of the families and communities who are affected - of those who have found basic goods and services harder to pay for and have experienced increasing levels of poverty and hardship."

Several tools should be used to study to best way to introduce the business to Kava. It is essential to hire a small team of professionals to get the business assessments up and running. Short term and long term transfers from the US facility are in order to recruit Kava residents, perform skills assessments, set up training and educational programs in preparation setting up a manufacturing plant.

Suggest that a team be put together to probe how to bring AMI to Kava to manufacture unclassified assemblies. The team should be

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