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Problem Formation and Decison Making

Defining the issues that appear in the business scenario below.

Discussing the forces that are involved in formulation of the problem.

Using problem formulation tools and techniques, describe the organizational and environmental obstacles in a way that considers various key stakeholders that will be impacted by decisions.

Applying critical thinking in the decision-making process.

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Scenario
Description of the Company

Genco is a manufacturing company that uses labor and industrial production, in which raw materials are transformed into finished goods on a large scale. Our finished goods may be used for other products such as produce, clothing, recycling, and refining of petroleum, etc.

GENCO HAS DECIDED TO ESTABLISH A PRESENCE AT KAVA AND THE COMPANY HAS THE SUPPORT OF LOCAL ORGANIZATIONS THAT CAN ASSIST THE SETTING UP OF BUSINESS IN KAVA
FACTS ABOUT THE ISLAND:

The location:

A significant island country in the South Pacific.
The people:
Over 50% under 15 years of age
Ethnic mix of indigenous South Pacific tribes, Asian (Chinese primarily), African, French, Spanish, and since World War II, a sizeable number of Americans.
Religions - Indigenous 50%, remainder closely divided between Christian, Buddhist, and Islamic.
Languages - Numerous indigenous, as well as English, Spanish, and French.

The economy:

Petroleum, coffee, cocoa, spices, bananas, sugar, tourism, fishing, and natural gas, as well as inexpensive, quality labor.
Disasters threats:
Tidal waves/tsunami
Typhoons/Hurricanes
Tornadoes
Floods
Fires
Volcanic eruptions
Earthquakes
HIV/AIDS
Petroleum spill
High risk for avian flu
Terrorism, from within and outside the country
Helping organizations:
Governmental service - local, state, and national levels?including the military
Community based organizations
Faith-based groups
Businesses

THE TASK:
Define our mission and my assignment:

Our company is considering establishing a greater presence here in Kava. That greater presence could take various forms, based on what's good for our company and what's good for the people of Kava. You and I get the chance to analyze, synthesize, and prescribe regarding that decision."
Because so many disasters happen here?" I questioned. "I think I can write up this recommendation in two words, 'Forget It'".
But our organization chose to play in this game and you chose to join our organization. If you really want to play, you will have to take your turn at bat. There are no designated hitters in this game."
I rephrased my thoughts, "OK, we want a greater presence on Kava, because so many disasters happen here."
Certainly, one reason is that whatever happens here affects us there. I'll make sure you understand that as we create this study. As you've seen recently, disasters happen at home, too. We can avoid, deny, or ignore them. We have to turn them into opportunities. Another huge reason is the founder of our company, Chris Morales, has a deep-seeded commitment to doing what is right. Not because of the economics, or politics, or recognition, but because it's the right thing to do. Our organization is far from perfect, but we keep trying to upgrade who we are, what we do, and how we do it. I believe we can't keep taking more from Kava, if we don't give more back. I want to live up to that Genco name. And, the third, maybe most consequential reason is the government of Kava, and I'm sure indirectly a bunch of other organizations, are asking us to bring our business "culture" to Kava.
Why is their government asking our company, a for-profit business, to help them with their, social needs?" I asked.
There are also three big, basic reasons, for that,and loads of other minor ones.
First of all, through our growth, our company has demonstrated that we can develop and manage a very effective, as well as highly efficient, organizational structure and processes. That includes all aspects of the company; marketing, finance, purchasing, technology, human resources, physical resource, transportation, strategic planning, leadership, etc.
Secondly, the goods and services that come from Kava, have a significant impact on our company, you and me, and most folks back home, as well as people all over the world.
Last, and certainly not least, the CEO has preached and demonstrated, 'In the long run, economics drives everything.'
All those fresh new critical-thinking skills I need to write a not-too-long Part I to what will be our company's plan about how we have a greater presence on Kava. I think Part I of the plan should discuss at least three areas; organizational processes, human resources, and ethics.

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Please refer to the attached file for the response.

GENCO EXPANSION INTO A NEW GLOBAL MARKET:
KAVA EXPERIENCE

PROBLEM STATEMENT
What strategies may be implemented by Genco to establish its presence in the KAVA market?
AREAS OF CONSIDERATION
1. Geographical Location
Kava is an island country in the South Pacific. As such there may be problems in transporting some inputs that are only available in the home country. As an island, the market may only be confined to the place and expanding into sub-markets may be difficult.
2. Demographics
The possible source of human resources may not be that feasible because over 50% of the country's population are under 15 years of age. At such a young age, they cannot be tapped as labour force for Kava yet.

The remaining 50% are either old enough to perform effectively or may not be that old but lack the necessary knowledge and skills for the job. This would mean either training them or getting people from the home country.
3. Economic condition of the place
The country is abundant with raw materials that may be utilized by the company in its operations. As such, the company could have an advantage in terms of cost and availability of raw materials. However, the possible threat is that the people (mix of indigenous tribes) may be indifferent or may consider the manufacturing activity of Genco as an intrusion to their privacy.
4. Natural environment
There are factors that are beyond the control of the company that would adversely affect its operations. These include the natural calamities and disasters. However, what the company may do is to be proactive or to prepare for such events.
5. Social /Peace and Order/ Health Situations
The company's operations may be threatened by the activities ...

Solution Summary

Problem formation and decision making is examined. The expert applies critical thinking in the decision-making process.

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