Mgt 350 - Decisions in Paradise Paper

Decisions in Paradise paper, Part lll

By

George Liss

MGT 350

January 9, 2011

In making the decision to become a greater presence on the island nation of Kava,

Accenture Consulting must make everyone aware of the hard work that lies ahead. Some

determining factors of the decision process are how much an effort the oil, coffee and tourism

industries are willing to put into these projects to make the joint ventures of producing oil,

coffee and enticing travelers to vacation on Kava to make all a win, win proposition. Accenture

is the world's leading consulting company, and evaluating resources for decision

implementation of solutions is analyzing the targeted industry or company, its capabilities and

leadership to determine if the company can do what is necessary for improvement of the

bottom line. For each industry Accenture is consulting for each one has a unique set of

circumstances which, will make the betterment of the company targeted a challenge to

accomplish. Accenture's involvement in Kava will have a positive impact on Stakeholders

bottom line. The increase of investors from other countries will solidify all stakeholders

positions of their investments on Kava. The team Accenture placed on the ground in Kava has

been brainstorming on each industry for the past month and has come up with ideas to

increase that bottom line for each industry targeted. The team has decided on the petroleum,

coffee, and tourist industries as well as some suggestions on how the government goes about

doing its business. Accenture's team has concluded there needs to be added personnel flown

in to project manage each industry during the contracted period.

The petroleum industry will be the focus of a targeted plan to make the industry better

able to become a leader in environmental protection, government regulation compliance,

accounting practices, information systems, and industry operating procedures (IRS, 2008). The

oil company involved in the exploration for oil on Kava will be required to follow accepted

petroleum industry guidelines on environmental protection. The company will disclose any and

all potential hazards to the environment to the landowners and the government, and provide

written reports to the landowners and the government on how the oil company will physically

protect the landowners from accidental spills, well failures, or poisonous gas discharges (Kruk,

2000). Also how the oil company will reclaim the land once the drilling has been completed.

Another requirement will be for the oil company to have an independent arbitrator on call to

address any disputes stemming from any conflicts between landowners the government and

the oil company. Others areas of concern are how will the oil company store and process the

crude, once it pumped out of the ground. The Accenture team's recommendation is to have

the oil company build a refinery on the island. The workforce on the island will support a

refinery very easy and the payroll generated from the refinery will increase the standard of

living on the island. When the refinery is operational, the oil company needs to live up to the

agreements that were promised to in the original negotiations with the Kavian government.

Because of clauses in the contract between the Oil Company and Kavas government, failure to

follow the laws of the island will cause the oil company to forfeit a large share of the oil

produced on Kava or possibly force the island government to nationalize the oil industry.

The Accenture teams recommendation for the coffee industry on Kava consists of the

following: join the International Coffee Organization, and abide by the latest (ICA, 2007)

international coffee agreement of 2007, which requires a deposit of their instruments of

ratification, accepted or approved (International Coffee Industry 2007). The agreement has

adopted the following objectives, encourage members to develop appropriate food safety

procedures, develop strategies to help local communities and small-scale farmers to benefit

from coffee production. The Agreement recognizes the contribution of a sustainable coffee

sector to the achievement of internationally agreed development goals, including the

Millennium Development Goals (MDG's), particularly with respect to poverty eradication (ICA,

2007). Joining the ICA will be a big step for kava's coffee industry, membership in the ICA gives

Kava's