Decisions in Paradise Paper Essay Example | Topics and Well Written Essays - 750 words

Decisions in Paradise Paper - Essay ExampleIssues kava is an island located in the South Pacific. The country has certain social problems due to the fact that the arena has a very divers(prenominal) ethnic and cultural background. Diversity can lead to problems of segmentation between the macrocosms. Another issue with the population of Kava is that the age composition is extremely low. In Kava over 50% of the population is to a lower place the age of 15. For business a population with such a low median age is atrocious because minors ar not a part of the labor force of a nation. There are health concerns within the population of Kava. The country has been hit hard by the HIV/AIDS epidemic. If a striation of the employees are infected with the HIV virus this could have a negative impact on the company because the insurance costs are going to be uplifted. Another issue with the population of Kava is that a large portion is indigenous. Indigenous cultures tend to have lower l evels of formal education in comparison with urban cultures. A major business risk of doing business in Kava is that the region is susceptible to multiple natural disasters scenarios including earthquakes, tsunamis, tornados, floods, fires, volcanic eruptions, and hurricanes. The Kava territory is also susceptible to terrorist threats from internal and opposed sources. Problem Statement Kava is a country that has had troubles attracting foreign investment due to the underdevelopment of the region and the high risk of natural disasters. There is nothing the people of Kava can do about the constitutive(a) business risk that nature poses to companies that penetrate this marketplace. Environmental Analysis Doing business in Kava is a high risk suggestion for Starbucks Cafe. The country is susceptible to many kinds of natural disasters. To offset the risk of this proposition the company can invest in insurance, but the premiums are going to be high. Despite the countrys susceptibilit y to natural disasters the country has valuable strategic agricultural crops for Starbucks Cafe including coffee and cocoa. collectible to the high unemployment and necessity of the region Kava would be a perfect location to implement a fair trade coffee plantation. Stakeholders Perspective There are numerous stakeholders that must be considered in any blowup plan into Kava. As a company investing in a foreign market the firm must act in the best interest of the shareholders. The shareholders of Starbucks Cafe expect expansion projects to generate a profit. To accept the project its net present value (NPV) must be high than cero (Besley & Brigham, 2000). A second stakeholder group that must be considered is the government of Kava. The government of Kava is feel for ways to decrease the unemployment rate and increase its tax revenues. The only way for the government to achieve those goals is by attracting foreign investment. A third stakeholders group that has to be considered is the population of Kava. There are a lot of children living in Kava. Employing the adult population will enable the parents to be able to provide food, medicine, and treasure to the innocent children. A large portion of the population of Kava is composed of indigenous people. Protecting their extraordinary culture and identity is important. The diversity of the population