Decision and Methodology Analysis:602487


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Business decision is the technique by which firms recognize he most suitable choice that is accessible before them in order to improve the business. These choices help towards expanding the general gainfulness and efficiency in this manner prompting development and more noteworthy manageability of firm. The current study is based on opening a new VPAC manufacturing plant in Almeria.

With a specific end goal to guarantee the practicality of venture statistical surveying will be led. Besides, report will enjoy accumulation of essential information and auxiliary for investigating the political conditions in Almeria. In addition to that, different factual instruments and methods will be used in order to help towards generating of precise business results.


Problem #1

The decision problems faced by VPAC are all co related to the fact that Almeria has unstable government due to the resent transition from military dictatorship nad rampant corruption is making things more worse for VPAC , there the managers face a daunting task of whether to purchase political influences for the first five years of operation, whether to continue  operations for the next five years  or return back to USA, is buying insurance for the operation worth it to cover its second five year. These various problems are making the transition difficult for VPAC. To counter these there are various policies the managers at VPAC can approach like Crisis Management and Business Continuity, Claims Preparation and Filing and Insurance Consideration (Bekaert et al., 2014).

In crisis management to help protect people, operations, and assets, businesses should consider taking proactive steps, like Maintaining up-to-date locations and travel plans for all employees and enabling them to report their status. Provide employees with regular updates about the local government and travel advisories. Communicating with staff in affected countries to gain advice or provide information about changes to their situation. Monitoring airlines flight schedules and status (Braun, 2015).

In Claims Preparation and Filing before an event, organizations should develop claim management plans that establish clear roles and responsibilities for personnel inside and outside of the organization. Because instability can develop quickly, key records   including insurance policies, contact lists, and financial and property records should be accessible in hard copy and electronic formats via local and alternative location source (Jervis, 2017).  In the event of a loss, organizations should begin to gather data for a claim filing. This includes capturing potential loss information and additional costs associated with the claim, including temporary repairs, extra expenses, and business interruption loss of income costs (Julio & Yook, 2016).

Insurance Considerations can be useful even before instability develops, businesses should review all insurance policies that may apply. Organizations should clearly understand their policy limits and sublimit, deductibles, loss-reporting requirements, covered perils, exclusions, and any other restrictions. Although laws vary by country, local risks in emerging markets generally cannot be covered by offshore insurers (Kelly, Pástor & Veronesi, 2016). When a multinational company chooses to place coverage for risk in these countries with global insurers on a non-admitted basis, a swift claims response may be absent when it is needed most. Before a loss, multinational organizations should review their insurance program.

There are various limitations of the policies in the case o VPAC moving to Almeria.

Crisis management has various limitations that include

Flailing to collection of required data and planning on itThis aspect of crisis management planning incorporates deciding potential perils or emergency circumstances, breaking down them, and planning or making an assortment of reactions.

Failing to establish a proper command structure: For instance, tending to a crisis or emergency in an assembling plant requires approaches not quite the same as those taken in an atomic power plant. Attempting to fit a non-specific crisis reaction strategy to unseemly situations is futile. Each substance should devise its own emergency reaction as indicated by the office, business, populace, and hierarchical structure

Failure to make crisis information easily understandable: Every individual on a crisis management team should be clear about his or her job duties and responsibilities. Materials should be easy to read and to use.


Bekaert, G., Harvey, C. R., Lundblad, C. T., & Siegel, S. (2014). Political risk spreads. Journal of International Business Studies, 45(4), 471-493.

Braun, B. (2015). Preparedness, crisis management and policy change: The euro area at the critical juncture of 2008–2013. The British Journal of Politics and International Relations, 17(3), 419-441.

Jervis, R. (2017). Perception and misperception in international politics. Princeton University Press.

Julio, B., & Yook, Y. (2016). Policy uncertainty, irreversibility, and cross-border flows of capital. Journal of International Economics, 103, 13-26.

Kelly, B., Pástor, Ľ., & Veronesi, P. (2016). The price of political uncertainty: Theory and evidence from the option market. The Journal of Finance, 71(5), 2417-2480.