Considering the facts of the case, Kava is both a high risk place for investment yet it offers a lot of opportunities as well for different types of businesses. The best option for the company to make their presence felt in Kava is to create the environment conducive for business investments and to diffuse the risk in investing alone. Under these premises, Nik can propose for the company to engage in real estate development that will lure both residential i.e. tourists and international commercial locators looking for a place that is secure and offers all the features and amenities necessary to put up a business in Kava. The company will develop a strategically located real estate in Kava to become the sustainable commercial center which will house the infinite investment potentials for the island.
To be known as the Kava commercial district (Kavacom), it will be a site for different commercial establishments that will realize the different opportunities in Kava including:
- Hotels, fine dining restaurants, fast food outlets, cafes and shopping malls that will promote and support the potential for tourism of Kava.
- Kavacom will be the home for the Kava Medical hospital, which will be the biggest hospital in Kava with the most high tech and state of the art facilities for health and medical care needs of all the people of Kava.
- Kavacom will be the site of academic institutions that will provide the growing education needs of the people considering that 50% of its population is less than 15 years of age. Incidentally, an International Disaster Center will be created which will engage in the research and training for disaster control considering that island is plagued with natural calamities which are a great opportunity for many international geological scientists for research.
- Kavacom will be the center for recreation and entertainment by housing the coliseums, entertainment and sports facilities among others.
- Fuel and Energy exploration companies can also be invited to the Kavacom in order to conduct petrol exploration potentials of Kava and research for alternative sources of fuel e.g. gas.
After the development or construction of the Kava Commercial district, the district will be marketed for international investors in coordination with the Kava government which can include other incentives to help source investors i.e. tax incentives and other liberal policies among others. The bulk of manpower requirements for the construction will be coming from Kava. Considering that kava is a home to typhoons, earthquakes and volcanic eruptions, a close physiography study will be conducted to identify the right location for the development. The company manager in this foreign subsidiary must have a geocentric culture (world oriented) or being flexible to adapt to the local environment yet maintaining international principles. A geocentric culture combines local responsiveness with global integration and fits the ideas of transnational corporation. (Lane, H.W., 2004)
The decision making technique used to determine this proposal is the ‘Six Thinking Hats’ technique by Edward de Bono in order to help in translating risks to opportunities. (Sloane, P. 2003) Because of the risk factors (white hat) in Kava, decision making focus on cost mitigation (negative or black hat perspective), that will initially create a negative intuition (red hat). However, with the yellow hat perspective, the economic potential of Kava i.e. Petroleum, coffee, cocoa, tourism, fishing, and natural gas, diversity of people in terms of language and religion makes it a microcosm of the international community. It takes creativity (green hat) to diffuse the investment by marketing the area for potential investment. The integration of international standards and indigenous values is approached by the green hat which pertains to the process control necessary for a multinational company.
Lane, H.W. (2004). The Blackwell Handbook of Global Management: A Guide to Managing Complexity. Blackwell Publishing, p 175-180
Sloane, P. (2003). The Leader’s Guide to Lateral Thinking Skills: Powerful Problem-solving skills. Kogan Page