Continental Mills. Company Studies.

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Table of Contents

Introduction
Decision implementation
Resources needed for decision implementation
Ethics
Conclusion
References

Introduction

Continental Mills is a company situated in Seattle in the United States. The Company which began operations in 1932 specializes in making mixes for home made baking products. At present the company is planning to increase its presence in the island country of Kava. Till now the company has been importing coffee, cocoa, bananas, and sugar for use in its products from this country. The founder of the company feels that a lot of resources have been purchased from this place and that it is now time to give something back to the country. Hence the decision of expansion is taken. Even though a tourist paradise, Kava has some major drawbacks also. It is plagued by natural disasters and a variety of tropical diseases. There are also threats from terrorists. But the advantages are, the availability of cheap raw materials mentioned above and also abundance of cheap and qualified labor. The population consists of an ethnic mix of indigenous South Pacific tribes, Asian (Chinese primarily), African, French, Spanish, and since World War II, a sizeable number of Americans. Continental Mills is represented in Kava by the very efficient and enterprising Alex.

Decision implementation

It would be relatively easy to form strategic decisions about moving into Kava, but implementing it would be a problem. “Good decisions may have less than desired results not because of the validity of the decision, but rather because of the way the decision was implemented.” (Borkowski, 2006). A review of literature reveals many factors that may affect decision implementation. Some of the relevant factors from different sources are given below.

Factors affecting decision implementation

As study conducted by Susan Miller on implementing strategic decision implementation titled “Implementing strategic decisions: four key success factors” lists the following factors that affect the process. They are “backing, assessability, specificity, cultural receptivity, propitiousness, familiarity, priority, resource availability, structural facilitation and flexibility.” (Miller, 1997). Other authors have given their viewpoints on this topic. They include trust, unresolved conflict during decision making, quality of the decision and external conflict. (Tony, 1996). Other relevant factors include bias against the decision or decision maker, costs of the implementation and resistance to change.

Proposed solutions

Since the implementation of the decision is to take place in Kava with all its advantages and disadvantages given earlier, proper backing is essential. The place is unfamiliar to persons living in the US. Full backing of the management of Continental Mills has to be assured. It would be easy to assess costs and other factors. But care has to be taken in assessing the policies of the government of Kava. The beliefs and culture has also to be assessed properly. There are enough human resources in Continental Mills to implement the decision. What have to be understood are the resources available in Kava for successful completion. This project has to be given top priority since this is the first expansion plan outside the country and that too in unfamiliar territory. There exists a cultural mix among the population in Kava. This might cause a problem and even resentment among the American workers in being sent there. The presence of few Americans will prove to be an advantage. Since the project is in an area that is not economically developed a certain amount of flexibility has to be incorporated in the implementation. This is because things may not go as planned. Delays may crop up or replacements have to be made. Trust from both sides (Continental workers, government and people of Kava) have to be assured. It will be essential to employ as many local persons as possible to develop a feeling of trust. Proper understanding of the culture (both work and social) of both countries has to be understood. All possible disagreements should be solved during the decision making process itself. If not, a compromise has to be arrived at. Otherwise disagreements will crop up during implementation. On the whole, the Company is capable of making quality decisions and hence will not cause any problems. Kava is a tourist destination. Hence the people will be familiar with the presence of Americans. It has been noted earlier that there are a few Americans settled in that country. External conflict from official sources will not be there because part of the reason for expansion is the invitation from the Government of Kava. Conflict from the local population is not expected. Terrorist threats may pose a problem and may also deter workers from US from going to work in Kava. Proper security and evacuation procedures should be worked out.

Resources needed for decision implementation

It is estimated that the total cost of the project will be 25 million USD. This will have to be raised though financing from banks and other institutions. Alternatively, a share issue could be resorted to or even a combined strategy may be planned. Another essential requirement is cultural training for the employees in US. For this a person familiar with the customs and culture of Kava will have to be employed. A contractor from the country should be selected for select construction work. It is better that the major construction be done by an American company if allowable by the government there. An employment agency will also have to be appointed for selection of local staff. Most importantly proper measures for the protection of the health of the staff have to be looked into. Proper immunization procedures have to be conducted on all staff deputed there. The place has no major health facilities and if possible a qualified doctor from US can accompany company staff. This arrangement should extend to a period of at least six months from start of implementation of the decision. Terrorist threat is another area of concern. American international policies may also cause resentment among the local population which is another area of concern. Proper security measures in the company premises should be enforced. Good relations must be developed with the security and police forces in the country. Threat from natural disasters is also a problem. All construction projects should keep this in mind. Storm and cyclone shelters should be incorporated into the construction. Early warning systems should be facilitated. An evacuation plan should also be worked out. For this an understanding with private airline operators could be worked out. The most important thing is to get full cooperation from staff in implementing the project. Only those workers who are willing to work there should be selected. Additional compensation and other allowances should also be provided to them.

Ethics

The policies of Continental Mills and the vision of its founder Chris Morales are rooted in ethical principles. This policy should exist to the branch of the company in the island of Kava also. The management as stakeholders should take care of the matter seriously. As mentioned earlier no worker should be asked to work in that country unless they are fully willing to do so. The shareholders of the company should be informed regularly about the progress of the decision implementation. Strict compliance of the policies of the local, state and national government of Kava should be ensured. All duties and taxes should be paid as required. No attempt at corruption should be done. The company and its expatriate workers should see that the feelings of the local population not be hurt. Respect towards the diverse culture that exists in Kava should also be seen to. Local workers with Continental in Kava should be treated as equals and compensated well. The farmers and other suppliers should also be paid well and on time. One major factor that should not be forgotten is that the company is here to make money and all suggestions given above should not compromise profitability.

Conclusion

The attempt by Continental Mills in expanding in the island of Kava is a bold and appreciable move. It would be difficult, especially for American workers to work there. It will take time to adjust to the local conditions and culture. But on the whole, adopting the above solutions will go a long way in a successful decision implementation. It is believed that the island of Kava and Continental Mills will have a long and mutually beneficial relationship.

References

Borkowski, W Paul. (2006). Decision Implementation-Success or Failure, Professor. AC: Associated Content. 2008. Web.

Miller, Susan. (1997). Implementing strategic decisions: four key success factors: Organization Studies. BNET. 2008. Web.

Tony, Simons. (1996). Executive conflict management: keys to excellent decisions and smooth implementation. All Business A D&B Company. 2008. Web.

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