Decisions in Paradise, Part I

Crystal Beauchamp

MGT/350

September 12, 2011
Jon Rickards

Decisions in Paradise, Part I

Kava is a small island country in the South Pacific. Kava has been plagued with unfortunate circumstances that have brought about one disaster after another. This is a country that is in dire need of some help and aid in the situation of getting the country cleaned up and on its way to recovery. My job is to see what I can do with a familiar company to help this country recover and continue on a path of growth and success.
Abstract
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.
Brainstorming
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 problem includes identifying the problem, establishing goals and objectives, and evaluating the impact of the problem (University of Phoenix, 2009a). The executives of the Walgreens Company chose the brainstorming technique to come up with the following options for entering the island country of Kava.
Option #1 The first option will analyze the effect of buying bare land and building a new free standing store on the island of Kava. Hiring and training native employees to staff the stores and hiring a private security company are also included in option number one. Table 1.1 outlines the projected costs over the next five years associated with the choices. The building will have an initial cost and in subsequent years an accrual amount to cover general repairs and upkeep. Once the land is purchased local property taxes are paid annually. Cash registers, trash compactors, computers, and all other equipment required to operate a Walgreens location is included in the equipment cost. Once all equipment is installed, yearly costs include replacement parts and equipment and software updates. Salary projections reflect a standard 3% cost of living raise per year. Salaries included are store employees, managers, and pharmacists. 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 however with the diverse culture, languages, and religions practiced on the island Walgreens believes that employing local people is the paramount way to build market share. Conclusion Developing the ability to think critically can be complex. "Critical thinking is that mode of thinking - about any subject, content, or problem - in which the thinker improves the quality of his or her thinking by skillfully taking charge of the structures inherent in thinking and imposing intellectual standards upon them" (Paul & Elder, 2009). Quick decisions are often based on opinions and biases rather than facts and sound arguments. In Kava it is imperative analyze, evaluate, and improve the situation. Walgreens must work “quickly and accurately assess and prioritize business needs, continue to make critical decisions, and try to prevent new problems from developing during the organizational change and solution implementation” (Smith, 2011). Walgreens executives used brainstorming to produce the options and decision-making techniques to evaluate the options and make a sound choice for entering Kava.

References
Elder, L., & Paul, R. (2009). close reading, substantive writing and critical thinking: foundational skills essential to the educated mind. Gifted Education International, 25(3), 286-295. Retrieved from EBSCOhost.
Smith, D. (2011). Decision-making: How people influence decisions. British Journal, 19(5), 329-332.