Decisions in Paradise

Videojet Technologies has recently decided to open a new branch location on a Southern Pacific island named Kava. We are very excited that the island is rich in resources such as petroleum, coffee, cocoa, spices, bananas, sugar, tourism, fishing, and natural gas, to name a few. The island locals also offer quality labor at a very reasonable price. Videojet has much to offer this industry, as our branding and marking products are essential to post-production labeling, stenciling and marking of factory-produced merchandise.

Key Problems and Issues:

There are some significant challenges related to industry in Kava. The island suffers from frequent natural disasters, such as: tidal waves and tsunamis, typhoons and hurricanes, tornadoes, floods, fires, volcanic eruptions, earthquakes, the presence of HIV/AIDS, the risk of petroleum spills, high risk for avian flu, as well as a constant threat of domestic terrorism and international terrorism.

These challenges pose a threat to our entire company, because what happens in Kava will impact our entire global organization. The local government of Kava has recognized that we have had a positive impact on each community that we have located branch operations in throughout the world and has extended an invitation to for us to join in a mutually beneficial operation located on the beautiful island of Kava.

Analysis and Evaluation:

If Videojet maintains its high level of excellence when approaching this new endeavor, we can make this new branch successful and profitable for us as well as the local community. Although Kava has a reputation for being a very challenging place to start up new business, we will have the advantage of several local organizations that are already in place to help us.

Kava has already established a Government and can provide the security that accompanies a professional Military. There are also several community-based organizations that will work alongside us to ensure that a positive impact is being made on the local population. There are Faith-based groups that will assist in charity work and improving the quality of life of the community, and there are existing businesses that are particularly interested in the products and services that we offer. We have already begun talking to local business’s about equipment that they would be able to purchase from us to increase their output and efficiency.

Considering the number and severity of natural disasters known to Kava can be sobering and intimidating, but we must remember that the locals are very accustomed to dealing with the challenges on this island and that they will be more than willing to help us with any planning or action required.

Recommendations and Plan of Action:

I recommend that we immediately begin working with the local government to locate an existing building or available acreage to build a new manufacturing plant. Hiring a local that is familiar with building and zoning codes would make things move along more efficiently. We would like to locate in an area that has a readily available labor pool. Building or locating closer the center of the island would lessen the affect of inclement weather on our plant. We should also consider building or leasing a structure that is fortified against heavy winds and weather. We do not want to spare any cost that will increase the safety of our plant and personnel. We may also want to consider building a storm shelter and evacuation route. Another factor to consider is the site’s proximity to emergency response units, such as Police, Fire and Rescue, and Military personnel.

We must begin forming our Human Resources department right away. We want to be able to offer an attractive benefits package that will ensure the highest morale levels and quality of living standards in our workforce. We must research local ordinates, rules and regulations for minimum pay, required benefits, life and health insurance and other such things. We must also investigate the general code of ethics expected in Kava. Because fifty percent of the population is under the age of fifteen, we must find out what the local age requirement is for hiring personnel.

I look forward to working with all of you on the new and exciting endeavor. If we approach this challenge with the full weight of Videojet excellence behind us, we will soon be able to add this to our list of successes.

The next step on making a decision about whether or not to establish a manufacturing plant on the island of Kava, is to consider our decision making process and make the most informed decision possible to arrive at a mutually beneficial solution for all parties involved.

Rational Decision Making (Rational Decision Making Models, 2010)

1. Define the situation/decision to be made

-Videojet Technologies desires an increased presence in Kava.

2. Identify the important criteria for the process and the result

-Numerous natural disasters affect the island.

-Known health risks, including possible exposure to HIV/AIDS and Avian Flu.

-Safety risks, including international and domestic terrorism and crime.

3. Consider all possible solutions

-Abandon Kava project.

-“Grab and Go” by bleeding the island of everything that is useful to us and leaving it behind.

-Work with local citizens and government to establish a mutually beneficial business partnership in Kava.

4. Calculate the consequences of these solutions versus the likelihood of satisfying the criteria

-Abandoning Kava would decrease moral and cast Videojet Technologies in a negative light.

-“Grab and Go” could bring legal action against us, as well as make a negative impact on our Global reputation and would not be consistent with our Core Principles.

-Establishing a mutually beneficial business partnership with the Kava citizens and Government could be very beneficial to both our internal and external stakeholders.

5. Choose the best option

-The mutually beneficial business partnership is our best option. We can help increase the quality of living on the island of Kava, while the local residents and Government can help us overcome the many challenges that we face in building a manufacturing plant on the island.

When considering this decision, I had to consider what decision would form the best possible outcome for all parties involved. We would like to promote a better quality of living for the people of Kava, but we cannot do so if it would diminish the reputation of our company or the interests of our stakeholders. (Ganly, 2010) Any loss that we take would indeed diminish the interest of our stockholders and investors, so we do not wish to take unnecessary financial risks. As we discussed in our proposal, Videojet Technologies stands to make a considerable amount of money once this investment begins to pay off. Not only with this profit improve our financial standings and the standings of our stakeholders, but it will also pay dividends to the quality of life on the island of Kava.

Making the decision was not difficult after weighing our options and choosing a solution that would benefit the company, the stakeholders, and the people of Kava. After defining the situation and identifying the criteria, I considered all possible solutions and their consequences, and chose the best possible option.

One of the reasons that I chose to use the Rational Decision Making process over any other process, is because in this scenario, the risk to the stakeholders of Videojet Technologies should be given more weight than any other consideration. This decision contains a very large amount of risk, and our stakeholders deserve to be informed of such risks. Those risks can easily be offset by the rewards, but only if this venture is approached in the proper way. We need to think things over well and be sure to consider all aspects of this scenario in order to anticipate and prepare for any problem that may arise during implementation.

Choosing to use this decision making process influenced my proposed solution by helping me focus my thoughts on an outcome that would mutually benefit all of the stakeholders. When I was considering the problem, I noticed that in order for this project to be successful, it must not only benefit Videojet Technologies and our stockholders, but it must also benefit the local community. I need a process that would guide the decision process in a manner that would give fair consideration to all parties involved.

Having arrived at this solution, I have full confidence that the Rational Decision Making Process has aided be in choosing a viable solution that will allow us to move forward quickly towards a solution that will benefit us and the people of Kava in exciting ways in the not-too-distant future.

Bibliography

Ganly, S. (2010, June 2). The Role of Management in Decision Implementation. Retrieved

August 28, 2010, from Associated Content.com: http://www.associatedcontent.com/article/5419720/the_role_of_management_in_decision.html?cat=3

Rational Decision Making Models. (2010). Retrieved August 27, 2010, from Decision Making

Confidence.com: http://www.decision-making-confidence.com/rational-decision-making-models.html