Factors affecting implementation of solutions
Having identified the proposed solutions to the problems that the McDonald faces in setting up a successful business in Kava, the implementation of these solutions becomes the next step. Decision application in any organization is marred by different forms of biasness. The biasness could result from liking someone and faulty overviews based on unconfirmed information. However, the greatest factors that act as determinants in the implementation process are those earlier on considered in the determination of the proposed solutions. In addition, the resource endowment of the McDonald Company and their allowable risk margin will determine how much they can invest and in what way to invest it. Each proposed solution can therefore be considered and the possible factors related to it analyzed (McDonald, 2011).
Premises
Since the business premises should be located in the Central Business District Kava’s government policies on the establishment of foreign businesses will apply. The company has to identify appropriate space and consult the city council on the possibility of establishment. Earlier suggestions on the characteristics of the premises location will be dependent on availability. The terms of acquisition of the building will then be discussed between the company representatives and the housing agents. The rent, goodwill or lease amount imposed and the companies suggested budget will determine closure of the contract. Should an agreement be struck, then the relevant licenses of operation must be acquired from the applicable authorities. These may include the business license, the medical license and others that may be deemed necessary. Licenses are evidence of the government acceptance of the company operations. Once the business is up and running then the company may opt to purchase the building and offer the business as a franchise to a prospective local entrepreneur (Edmund, n. d).
Equipment and room preparation
Subsequent to securing the business premises the concerned building should then be tailored to resemble the already established businesses in America. To achieve these, the company will engage the services of its structural engineer and the local masons in order to develop an exact replica of the existing structures. Nevertheless, availability of local expertise will determine the need for foreign experts. Decoration of the building should be done by a competent local individual and the necessary equipment acquired from the mother country if the business has to maintain its culture. A cheap and efficient mode of transport should then be identified.
Advertising
The method used to raise awareness on the arrival of new McDonald restaurant and the search for the best employees will be dependent on the speed, cost and efficiency of the method. If there are more television viewers than newspaper readers then the most efficient method will be the use of television. However, in order to reach more people different advertising methods can be mutually applied. In fact, to reach the right qualified staff the company should advertise in the catering and hotel management institutions. A small competition to discover the best cooks can be held for two major reasons namely to help tap the best cooking talents in Kava and to popularize the company to the locals. This way the company is bound to kick start its operations on a very high note. Prior experience should however be emphasized while picking the best applicants for the jobs. This reduces the costs involved in training new arrivals. The first staff should also consist of foreign employees to assist in passing the culture to the locals (McDonald, 2011).
Products
Since there are Americans and tourists dwelling in Kava many of the existent products should be sold here. On the other hand, the presence of other ethnic and religious groups with varying beliefs will prompt the addition and differentiation of a variety of products. Researchers in the catering industry should be hired to identify new products for the other ethnic groups. The serving areas might also be differentiated to cater for these differences. For instance, Muslims might not be comfortable being served at locations where pig products are sold. Such decisions ensure ethnic or racial difference does not influence the customer turn out.
A thorough research should be conducted on the possible pricing of the products. This will be dependent on the cost of the raw material, the rent expense, number of staff and their remuneration amount. To begin with the staffing should be on the minimum and should be adjusted depending on the demand. The availability of raw materials, low transport costs and cheap labor suggests that the price should not be unreasonably high. The price of the competitors’ products in the region will also influence the companies pricing. Besides, the company management may set the break even point which eventually determines the profit margin. This has a bearing on the price of products adopted by the company in Kava. The pricing of the new products is nonetheless dependent on the costs involved and the companies already established pricing model. Lastly, the government tax or price controls on the foreign company operations may place a ceiling beyond which the company cannot price its products (Edmund, n. d).
Transportation
The raw materials needed might be differentiated into two including those available locally and those to be imported. Raw materials available locally are best transported from the source areas to the company store by the company van. The company should hire a driver and purchases manager who oversees the smooth provision of supplies to the company. The imported raw materials will be availed through air transport for faster delivery. This ensures that the company has the relevant quantities of each commodity at the required time.
Necessary resources
In the implementation of the above solutions several resources will be required. The most important will be the financial and the human resources. Funds will be required to pay for the rent deposit and the supposed goodwill. Amount set aside for this depends on the management budget and the usual percentage allowable for such expenses since the rent is a recurrent expense. Moreover, funds will be required for purchase of the licenses of operation from the government (My Professor.com, n. d). The set up process of the premises requires ready cash as most masons are paid on a weekly or daily basis unless otherwise agreed. Therefore, the company finance manger should ensure proper arrangements are made with regards to this. The project manager can handle the payments while overseeing the preparation of the building. Availability of timely funds helps create a good reputation of the company amongst the locals.
Other resources include the food preparation equipment. These can be purchased depending on the products being offered by the company. Majority of these are shipped from America since as a good number of them may not be available in Kava. The decoration materials are available locally and will therefore be purchased from the local stores. The expansion of the business into a drive through restaurant like the already established South African franchise may be established as the business picks up.
The human resource manager should be availed at the early start of business to help impart the locals with the relevant skills for future independent running of the business. Previous foreign business startups in other foreign have proved more successful when managed by the locals. This is purely because they can readily maintain Kava’s culture. Where qualified locals are not available then the foreigners should persist in the running of the business.
Ethical implications according to the stakeholders
Stakeholders are majorly concerned with the subsequent returns of every business venture. The expansion of the business to Kava will definitely come with more returns. However, these will only come after the breakeven point. Since previous business ventures in other foreign countries have brought more returns through management by the locals the stakeholders are bound to accept the management decision (McDonald, 2011).
At the start the stakeholders may not agree with the decision to rent out the place. They may be more insistent on acquiring the buildings as an asset. However, the frequent tornados and tsunamis may prompt a change from the normal business operations of the company. This reduces the risks that result from natural calamities which could gravely affect the share price of the company. The decisions on the equipment to be purchased and the transport options will definitely be accepted as they are in their best interests of maximizing profits. The company’s tradition of conducting charitable events may come along later in order to help popularize the company further. Implementation of these solutions would ensure McDonald uphold its culture of success in the new discovered market of Kava.
References
Edmund, N. (n.d). Decision Making.
McDonald (2011). Mission and Vision. Web.
My Professor. Com (n.d). McDonald’s Corporation: the Past, Present, and Future.