Decisions in Paradise Paper 1 Essay
There are several issues that normally appear in a business scenario. These issues include market, competition, operations, management, financial section, schedule of operation, executive summary of the business, and the description of the risks that may be encountered in the future. The executive summary must define how the business is supposed to be and acts like a cover page which must be exhaustible as possible.
The business description must describe whether the business is a new, old or its being expanded, more so, it describes the ownership of the business, location, skills and experience to run the business and how the community will benefit from the business. The market must be clearly be defined, i. e. , who are expected to be the customers, how is your business expected to compete in the market, the expected share market, promotion and pricing strategies to be used and the anticipated future of the business.
Competition must be clearly be analyzed in terms of the expected competitors, how to counter the competition, the strengths of the potential competitors must be understood and take advantage of them besides knowing them, understanding their actions, their market share, market mix, pricing policies etc. how the business is to be operated. The financial section must elaborate the source and cost of capital, the expected returns on capital and revenue.
The risks and how they will be countered incase they occur is a crucial scenario in a business, the risks are mainly countered through insurance policies and contract farming in case of a production firm. The management qualification, availability capability and expectation must be defined in the business scenario. In reference to the business scenario in Kava, the major risks in the business are most natural catastrophes which include tidal waves, typhoons/Hurricanes, tornadoes, floods, volcanic eruptions and man made catastrophes like the fires, and disease, this means that the business in Kava is fully equipped with control measures.
The firm also has well established market since its operation affect the people of Kava and the rest of the world to a great dealing, meaning that it may be enjoying a kind of monopoly in its business. The firm has a well established management, processes and organizational structure which are very efficient and effective which includes aspects like marketing, finance, purchasing, technology, human resources, physical resource, transportation, strategic planning, leadership, etc. Problem formulation involves a number of steps that must clearly be understood.
The process begins by identifying the problem; the problem must first be clearly be understood, the available resources within the business are the identified, the resources must be identified so as to solve the problem. The action to be taken and the constraints in each alternative course must be identified and their possibility to solve the problem. The best solution must of the problem is them identified so as to solve the identified problem completely to the satisfaction of the management and the firm in general.
The process of problem formulation must define the expected solution of the problem after using the available resources in the business. This process is normally of great essence than the problem solving process its self since a well formulated problem is easily solved that a problem solving process with poorly formulated problem. A well formulated problem is a key step towards ending a problem completely. There are several organizational and environmental obstacles that have an impact on the stake holders of a firm or business.
Some of the organization factors that affect the stake holders is the ability of the decision makers to make a good solution to solve the problem at hand, though the this function of decision making cuts across all the four function of the business, it’s the responsibility of the management to make decision, so in a case where by the management is ill equipped and ends up making a wrong decision, this will affect the stake holders since there will be wastage, misappropriation of fund and this will eventually be reflected in the share earning, i. e. they will be reduced. Lack of enough capital can affect the decision made and eventually b e reflected to the shareholders return. Incase where by the management makes a decision to change all the operation due to change of technology and increased competition, the firm may have some inadequate capital and low chance to secure a loan, this will lead to the decision made not being implemented and therefore the affect the shareholder since the firm may be closed due to low market share since its products may be too expensive in comparison to these of competitors.
Decision making is an activity that measures the ability of manager to make good decisions i. e. getting the right thing done at the right moment to solve the problems at hand suitably. Decision making therefore is the activity of selecting from among the possible alternative a future course of action. The search for the best alternative or decision is aided by a certain steps that are involved.
This process begins by identifying of the problem at hand and understanding it. The likely solutions are then identified. The qualitative and quantitive effects of each possible solution are then identified. The best action is then selected and implemented. Finally, the results are then reviewed to check if the expected results were achieved and this enables remedial action to be taken and to act as guide for the future decision.
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