Decisions in Paradise Part II
The problems associated with setting a business in Kava can be identified and solutions sought through benchmarking decision making techniques. Benchmarking is a process whereby one’s business processes and performance metrics are compared to industry best practices or best practices from other industries. Most of the typical dimensions measured are cost, time, and quality (Astletiner, 2002). During the process of benchmarking, the best firms in industries are identified by management and compare the results in order to determine the best industry to work with. In the case for setting up a business in Kava, the most important thing to identify is the best solution to the existing problems. In order to ensure that a company with intentions of investing in this country does not experience a lot of problems, franchise method could be used. In this case, a business already existing in Kava would be operating as a separate unit but bearing the name of the parent company.
Basically, the benchmarking decision making method would be effectively used in selecting the best company to operate with. In this case, all the companies in Kava selling the same products would be selected.Decisions in Paradise, Part II In order to ensure that the company selected is the best, bench marking methods would include the key variables to be looked at which include; costs, time, and quality (Saul, 2004). This shows that the company with good reputation in the country and with best employees would be selected. In doing this a number of companies would be analyzed and the best is selected. This would save the foreign company or business from experiencing problems in Kava directly as these problems would not be so severe to the locals as they could have been to the foreigners working for a foreign company.
It should be noted that there is no universal benchmarking process that is adopted. Benchmarking has been widely used and this has led to the emergence of different methodologies. The following steps may be used.
- Identification of the problem areas: The problem in this case is the problems that would be faced when a foreign company sets up business in Kava directly. These problems include, terrorism, susceptibility to extreme weather conditions, large percentage of population suffering from AIDS hence no adequate healthy workers, and low development of the country (Astletiner, 2002).
- Identification of other companies with similar processes: The foreign company should identify a similar company in Kava that operate similarly. This would help in ensuring that the companies selected have a similar line of operation. For instance, a company wishing to introduce electronics company in Kava would look for companies selling electronics in the country (Saul, 2004).
- Identification of leading organizations in the area: A successful franchise could be with leading companies in the area.Decisions in Paradise, Part II It is therefore important to look for the leading companies in Kava which are in a similar line of operation with the investing company. For instance the leading electronics dealer in the country could be identified.
- Survey companies for measures and practices: The identified companies should be surveyed for measures and practices in order to ensure that the selected company is the best.
- Visiting the best leading companies to identify the leading edge practices: Companies provide information when they in direct contact with bargainers (Saul, 2004).
- Implement new and improved business practices: Implementation plans including identification of opportunities, financing the project as well as selling ideas to the local organization for the purposes of gaining demonstrated value from the processes.
Benchmarking process of decision making is advantageous in that it helps in identifying the strengths and weaknesses of a business partner hence assisting in making wise decisions.
Astletiner, H. (2002). Teaching Critical Thinking Online. Journal of Instructional Psychology, Vol. 29 (2), pp. 51
Saul, J. (2004). Benchmarking for Nonprofits: How to Measure, Manage, and Improve Performance. New Jersey: Prentice Hall