1. What can Xavier do to turn the economical and his entrepreneurial weaknesses into strengths?
2. What can Xavier do to turn the economical and environmental threats into …show more content…
ALTERNATIVE COURSES OF ACTIONS
…concerning problem no. 1: What can Xavier do to turn the economical and his entrepreneurial weaknesses into strengths?
1. Since Xavier does not understand the concept of hedging, he would be advised to hire additional personnel.
Advantage: The newly hired is taking charge of the hedging aspect, while Xavier can be more focus on the administration of his business.
Disadvantage: Additional costs and training.
2. Japanese farmers studied the art of shrimp farming at Xavier’s public research institute and have brought the methods to their own country. Xavier’s institute should keep certain information on their method procedures in the shrimp business as a company’s secret.
Advantage: This discretion of certain information of their business will secure the uniqueness
Disadvantage: International relationships might suffer.
…concerning problem no. 2. What can Xavier do to turn the economical and environmental threats into opportunities?
(Comment: The threats in this case are varied and deeper to be analyzed in reality since the economical and environmental solutions are beyond Xavier’s capabilities. However, this paper is an attempt to find probable …show more content…
Real estate rates from outside investors shall be considered.
Advantage: Asking for loans from foreign investors will give Xavier the opportunity to expand his business and ensure that it is not “blood money” from its neighboring countries.
Disadvantage: Xavier’s business is forced to repay the loan in a given time period with added interest rates in Dollar. Thus, the business must run well to repay the loaned amount.
3. Environmentally, Xavier needs to upgrade and up stock his equipment to ensure naturally friendly methods in his shrimp business.
Advantage: In that way he is helping to lessen the burden of the natural environment, and avoid issues with NGOs that see an environmental threat of his business.
Disadvantage: Obtaining the equipments needed to ensure natural friendly methods will require Xavier to invest into his business, making him consider loans from banks, other national or international institutions who give financial aid (with interest).
IV. RECOMMENDATION
First recommendation is to hire an additional staff that takes care of the hedging since Xavier is total unfamiliar with its concept. This will give him ample time and space to keep focus on the entire business rather than on little flaws that might just hinder the