Alexander Cai's Blog

War has been eminent throughout human history. With each conflict, the involved nations’ economy has been affected. Recently a planned attack by experienced Somali militants on a luxury mall has left many Kenyans and tourists dead and injured. Certainly, this has made many news articles around the world.

After hearing this incident, as a consumer, I would be less likely to enter the region because of the violence. With possibly many others with the same thoughts, business from tourists in the region is likely to decline. In order to combat this, if I were a business owner, I would try to find a partner outside the region to sell my product. However, in such a destitute region, this idea seems highly unlikely. Therefore, the only way I can imagine to survive is to rebrand my products and alter the business model so it targets local residents. If possible, I would buy insurance to ensure the safety of my business.

Being the owner of a business in third world country with violence is not an easy task. However, by adapting the business model to the changing environment and meeting what is demanded can help the business thrive. This can include changing the value proposition. 

Article and Picture: http://www.theglobeandmail.com/news/world/death-toll-in-kenyan-mall-siege-expected-to-rise/article14459430/

A recent article demonstrates how government intervention can have an impact on business as well as the difficult challenges and decisions businesses have to make. Also, the article questions the degree of ethics of certain business practices.

It is imperative for companies to improve efficiency in order to remain or become competitive in the market. However, Belo Sun Mining Corp. has done this unethically by deciding not to take time or money to consider the possible ramifications on the environment and on the indigenous people in the area if a new mine were to be developed. The act of not initially surveying the surrounding suggests the company is afraid of a negative-impact report. This possible threat could have suspended the project until a solution was proposed. Hence stakeholders might have reconsidered and withdrawn their investments from the company because of turmoil. Other than price and time, evidence against the development of the mine is a possible reason why Belo Sun Mining Corp. did not invest in a study about the effect on the indigenous community and the environment.

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