Decisions in Paradise, Part I - Essay Example

Surely, what lacks in Kava that would discourage the giant coffeehouse company from setting its subsidiary in the island? Like it is reflected in the mission statement of the company, Starbucks main drive to establish a presence in Kava is to ensure profitable operation of the company and to contribute to the betterment of social and economic welfare of the islanders (Kava population). Behind every attractive business opportunity, there are numerous business risks. Therefore, it is imperative to critically examine the probable risks that Starbuck is likely to encounter prior to making a crucial decision of establishing its presence in Kava.

Initiating business on an island that is an epitome of an area under constant wrath of natural disasters is quite a huge gamble to take. Kava is in a mess and people are obviously exited with the tragedy they have been experiencing, which poses a great challenge for new business set up in the area. To begin with, one of the most apparent challenges that the company will encounter when trying to establish its presence in Kava is prevalent disaster threats. Kava is known to be under constant threat of tidal waves, typhoons, tornadoes, floods, fires, volcanic eruptions, earthquakes, HIV/AIDS, avian flu, terrorism and petroleum spill.

These would most likely affect the company’s operation processes. As such, it would be crucial for the company to employ effective research team to study and recommend a location which exhibits minimal exposure to natural disasters. The company should also establish an effective medical team to ensure that cases of avian flu and HIV/AIDS risks are well taken care of. Another possible problem that is likely to affect the company concerns human resources. Over 50 percent of the population of Kava constitutes young individuals below 15 years of age.

As such, the company faces a huge challenge concerning recruitment. To counter this problem, the company will develop part-time employment initiatives for those who are under 16 years of age. Ethical business practice is another key challenge that the company will have to reckon with. First, greater percentage of the island’s population is below 15 years of age. This poses a big challenge on employee engagement. The company will have to ensure that it does not violate the minimum age requirement when recruiting workers.

The majority of the country’s population is under 15 years, which exposes the company to numerous suits for using child labor. Another consideration that the company will have to make is upholding ethical production practices. In the contemporary world, many companies are establishing their presence in both domestic and international markets by preaching “going green” gospel (Mullerat, 2010). According to Horrigan (2010), the going green concept is politically oriented compelling organizations to exhibit their social corporate responsibility by showing their green credentials demonstrating their positive contribution towards sustainability and community development.

Starbuck has principles that drive its mission, which is in line with social corporate responsibility requirements. “Our coffee” principle emphasizes on quality while “our partners” principles concentrates on respect and dignity in its operations. The company ensures perfect human connection in dealing with its customers and models its stores