Decisions in Paradise Part II - Essay Example

Despite the business risk associated with the Kava project there are also tremendous opportunities and benefits associated with the project if the company takes advantage it. At the turn of the second decade of the 21st century we have reached a point in our history in which society expects more from corporations than ever. A company that finds a special needs community such as Kava which has been forgotten by the rest of society can utilized their business investment as a catalyst for a global social responsibility campaign.

The first alternative solution is to build a brand new factory in Kava to expand the production capacity of the enterprise. This alternative implies the highest capital commitment of any other alternative. The company is facing political pressures from the Kava government for greater involvement in the community. The solution would comply with the political factor, but it might not be the best alternative because there are other stakeholders to consider. The business risk associated with this alternative is high.

Kava has a topography and geographic location that makes it susceptible to natural disasters such as tidal waves, tsunamis, typhoons, hurricanes, floods, fires, volcanic eruptions, and earthquakes (Decisions in Paradise: How to Be, or Not to Be, 2009). There are other issues in Kava. The population is at high risk for Avian Flu and the population faces an HIV / AIDS epidemic. The island is susceptible to petroleum spills, which is an undesirable business risk due to the potential ecological disaster in the entire island.

The region has a high risk for both domestic and foreign terrorist attacks. The shareholders of the company that invested a lot of money in the firm must be considered, thus the philanthropic plan in Kava cannot exceed business logic. In order to provide an analysis utilizing critical thinking techniques a model that applies