All entries for Wednesday 14 March 2012

March 14, 2012

RDM–the problem of making decisions in risky countries.

According to the discussion today with my friends related to the risk of investing in countries such as Venezuela, concerning that this organizations is a multinational and it's currently making a good profit, I want to share with you my view. Well, in terms of worker conditions, my friend was explaining that in comparison with other countries where this company has manufactures, the scenario will be more favorable for them, because the risk does not exits as the same level as Venezuela does, as mentioned before taking this country as an example. Thus, its “reasonable” the decision made for CEO to avoid investing a lot there, regardless the situation goes well. Nevertheless, workers might complain and do not be agree with this. However, I understood that suddenly the scenario might get worse for this company, which will generate in spending additional money to cover the problem. In other words, looking this from polities view, in just few hours there might has a random decision which might affect a lot the profit of the company. In fact, though this point does make sense, it will be a big challenge for leaders to make this sort of decisions when the labor force is affected. Let’s say that some organizations are taking care about workers, but to be honest, they are really aware of reserving some money for any random issue and clearly this money is coming from the reductions in conditions within the company at this country.


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