Introduction
Every now and then, business organizations are faced with various issues that it seeks to solve. Venturing in new areas call for business organizations to develop a framework whereby, they analyse the strength and the weaknesses of undertaking a certain business decision. Such a move is coupled with so many problems that need solving. Issues have to be addressed carefully to determine whether it is a worthy venture or not (Ganaway, 2006).
In the description given, various issues have risen up; the first one is the problem of the environment. The area has a risk of facing disasters like tidal waves, and the business can be affected so much by this issue because it may lead to more added cost to the business, for example, insuring the business. Most insurance companies tend to put a higher premium for businesses that are faced by such big perils, and the resultant of this is the business spending more than anticipated in the long run.
The business may turn out to be less competitive in the long run. Kava area also faces a problem of labor. The population is also another issue that will affect the business. The fact that half the population is under the age of fifteen years means there might be a problem with both skilled and unskilled labor. The age bracket means that most of the people here are in school.
Therefore, there may be a risk in the scarcity of the labor and due to the forces of demand and supply, the demand may be higher than the supply, hence the cost of labor may turn out to be high(Ganaway, 2006). Therefore, the returns for the company face a risk of being low since the overheads are high.
The issue of communication is also arising in this context. A company relies on how much they can convince the public of their products to make a sale. The fact that the several communities in the area speak different languages means that the company might have a problem in convincing the target customers who may not understand certain languages.
Though Kaya’s community may be deemed diverse, there is also a risk of culture conflict in the area. The various communities have different cultures, which the organization needs to understand before it engages in business to prevent incidences of conflict between the various needs of these communities.
The main forces that are involved in the formulation of the problem also need to be addressed. A business enjoys efficiency from producing products that are uniform. In the underlying context, this might not be a possibility since there is a mix of ethnicity.
Different communities have various taboos and preferences. The organization may need to adjust to new products or even introduce new products that are favorable to the new communities. In turn, this may become an added cost since they may have to undergo processes like carrying research.
Age is another force that will be involved in formulating the problem. The fact that it will pose both short time and longtime effects on both the market and labor needs to be considered (Singla, 1993). On the market, it means that products that are for middle age group people may not have a market in the meantime, but will have a good available market in future. The labor is also such that there may not be good supply of labor now, but there will be overproduction of labor in future.
Environmental and disaster issues are also of effect to the problem. Presence of such factors as tsunami, tornados, fires, volcanic eruptions, HIV/AIDS, Petroleum spill, and Hurricanes are some of the factors that cab negatively affect the business. All these factors need to be addressed when coming up with the solution since they will affect the decisions made.
They form a big part of the problem since they will affect the way the organization is going to handle itself under these conditions. Acts of terrorism are also an aspect that needs consideration since they have great effects on the organization (Singla, 1993). An incident of terrorist attacks may affect the organization financially as well as the wellbeing of its personnel. It also affects the market orientation due to movement of people in the region.
There are various obstacles that will affect key stakeholders, among them being organizational and environmental obstacles. An organization seeks to have a competitive edge among the competitors in the market. Achievement of this goal is dependent on overcoming so many things in this scenario.
To start with, there needs to have an understanding of the cultures that are in this region. Understanding of these cultures means that they will be able to take care of the issues that come with these cultures, for example, the taste and preferences of these different groups of people.
The organization needs to adjust in a way that they fulfill the tastes of the individuals that are the costumer (Statt, 1999). Doing so is the only way they will achieve the goal of controlling the market. In every society, there are always regulations that need to be followed. An organization has the need to solve obstacles that come with new regulation that are governing them so that they do not face penalties that come with breaking them, as well as ensuring that their policies do not conflict with their policies.
Environmental obstacles that need to be addressed are set out by both local and international bodies. Basically, they deal with the well fare of the environment. Their main aim is ensuring that the environment is kept safe for human survival. They may include laws set by international community to prevent such issues like global warming.
An organization should make sure that they adhere to such laws since not only will they have no problems with environmental bodies, they also make the environment around safe and healthy for human living. It is also necessary to ensure that the organization operates in such an ethical manner where observances of rules are not a problem to them (North, 1994).
For a decision to be reached on whether to continue with the proposed undertaking, certain things have to be considered first. For one, the policies of the organization should be upheld to guide this process. The problems formulated should be the base on the decision to be reached, as they highlight the scenario that is in existence.
All the problems that are there need to be addressed each at a time, and maximum attention is given to the ones that pose the biggest problem. For example, in this scenario, the issue of terrorism is one problematic question because it not only affects the market, but it is also a big problem to the personnel in the organization. There is also the environment, which has one of the worst conditions that a business organization can face.
All these problems need to be quantified in monetary terms and weighed according to the prospects of sales the organization is planning to have (Jeston, 2006). Since one of the main motives of a business organization is to earn profit, profit margin should always be put in consideration. A sound solution need to be such that it incorporates all the factors and puts them to perspective, and at the end of the day earn considerable profit.
References
Ganaway, N. B. (2006). Construction business management: a guide to contracting for business success. Massachusetts: Butterworth-Heinemann .
Jeston, J. N. (2006). Business process management: practical guidelines to successful implementations. Massachusetts: Butterworth-Heinemann .
North, K. (1997). Environmental business management: an introduction. Geneva: International Labour Organization .
Singla, R. K. (1993). Business Management. New Delhi: FK Publications.
Statt, D. A. ( 1999). Concise dictionary of business management. New York: Routledge.