Decisions In Paradise: Synthesis Phase Essay

806 words - 4 pages

Kava Expansion: Synthesis Phase

Kava Expansion: Synthesis Phase
The Walgreens Company is opening a store location on the Pacific Island of Kava. In the analysis phase several problems were identified including how the land and building will be acquired, where the employees will come from and who will provide security are all issues that must be addressed. Walgreens used decision-making tools and techniques to perform the required analysis identifying problems and possible solutions.
Decision-making tools and techniques are methods used to help guide one in making decisions. According to University of Phoenix’s decision-making model, framing the ...view middle of the document...

Security is provided by ABC Security Company. ABC Security is a well established company with an excellent track record of keeping employees and property safe especially following natural disasters.
Option #2
The second option will reveal the cost effects of leasing the land and remodeling an existing building. Relocating current employees to Kava and partnering with the local government for security are analyzed in the second option. Table 1.2 reflects the projected costs over the next five years.

Remodeling an existing building is far more expensive than building a new structure and this is reflected in the year one charges. However, lease rates for businesses in Kava are relatively low as seen in years two through five of the building expenses. Leasing land is also a low cost commitment with no cost penalty should Walgreens choose to terminate the venture. Relocation packages for current employees carry significant cost and finding employees who can speak one or more of the native languages is a challenge. Salaries of existing employees are also significantly higher than those of newly hired employees. Security provided by the government, paid via a monthly tax, is relatively inexpensive however, guaranteeing the safety of employees and property after a natural disaster is tenuous at best.
The Choice
Walgreens has chosen to use option one as the plan for entering Kava. Option one includes substantial cost savings and higher security for both employees and property. The biggest challenge in choosing this option will be the hiring and training of employees. Staffing could prove difficult...

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