Free C&C Relocating to Aruba Essay Sample
According to (Babu, 2007), the act of relocating some aspects of a business to other countries in America is popularly known as off shoring. Company relocation although considered in most business quarters as an investment due to the possibilities of better opportunities, usually requires a lot of considerations (McKinsey Global Institute, 2007). The possibility of overlooking some important aspects may make the venture a total failure of even delay business success. Gathering of information through reconnaissance ventures is usually one of the most important steps. The information collected will definitely be used towards the formulation of strategies that will give the company a good head start in terms market venture, absorbing the already established competition if any, familiarization with consumer trends and habits, anticipation of challenges and consumers base and other important business factors. One mostly overlooked aspect is the welfare of the employees. In this age where businesses are quickly realizing the importance of human resource in business success, such an omission may be fatal to the business (McKinsey Global Institute, 2007).
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Analysis of Findings
Basically Aruba is relatively small country more or less big than Washington DC. Aruba is basically an island. However the Aruba neighboring countries are Venezuela, Netherlands Antilles, and Curacao. 11 % of the country's land is used for arable farming; the country does not have any cash crops or forest and woodlands. The capital city of Aruba is called Orenjestad and by 2010 the country's population was placed at 104,589 with the growth in population placed at 1.48; a drop in comparison with the previous two years (Central Intelligence Agency, 2010) Basically Aruba offers a new market for C&C because it is an Island that is surrounded by expansive ocean waters that can be a resource for many marine investors.
Currently the major source of income earner for the country is tourism due to the expansive beaches, the clear waters and the shiny weather. The country attracts many tourists from Europe, North America, South America and Canada. Due the realization of the importance of the site as a tourist attraction, the local government usually constituted with the authority from the Queen of Netherlands has capitalized on marketing the site as a tourist attraction. In addition, the government has also ensured that the aspects that attract tourists such as the clean sandy beaches and the clear waters are environmentally protected. Currently close to 30% of the nations income originates from tourism. According to Aruba Travel Guide (Aruba Travel Guide, 2010),
Cruise ship arrivals, flights and the construction of new hotels and facilities have all increased at a breathtaking rate, and today Aruba is one of the most popular destinations for, in particular north and South Americans.
The implication is that the effort is solely by the government but that the destination has also attracted international investors. The government has also recently initiated favorable packages for new companies and individuals seeking to venture into the lucrative market as a way of attracting investors. The country has been enjoying favorable economic growth apart from only two years for the past twenty years. The favorable tax provisions both for foreign owned companies and local companies have created a conducive environment for business ventures (Aruba Economic Affairs, 2010). The general implication is that the standard of living in the country has been maintained high. The situation therefore sounds very favorable being that other players are venturing into the market compounded by the willingness of the government to attract investors.
The general observation is that the population of Aruba is very small and in addition only a small portion of the population consists of skilled laborers most laborers are imported. Therefore, C&C will have to relocate together with its labor force. This realization brings into perspective an important consideration which is whether there will be housing and basic social amenities for the workers. The findings established that there were numerous options for persons wishing to settle in Aruba. Houses for sale range from around $ 100,000 to $ 900,000. In addition, most houses are located near the beaches and they will therefore offer employee a serene and enjoyable environment (Aruba Real Estate, 2010).
Infrastructure and Political Stability
Due to the fact that the country has enjoyed a continued political stability coupled with an efficient and effective government, the country has managed to build itself adequate infrastructure to match the magnitude and class of tourists that visit the country (Aruba Economic Affairs, 2010). The assurance of political stability will be beneficial to C&C because it will give the company the opportunity to make long term projections and goals. In addition, the environment with superb infrastructure will promote business since more investors and business people will seek opportunities. Most of the investors will be seeking to invest in marine related businesses and C&C will be able to tap into the lucrative business environment via its reputation, quality and the skilled work force it boasts of.
With regard to the findings of this study the realization is that C&C should be ready to move and take its position of the market in this lucrative Caribbean Island. The business opportunities are there and the projections with regard to the growing economy, is that more and more business opportunities will be created. The fact that Aruba is an island makes it an obvious destination for marine based investors. There are already many cruise ships that visit the Aruba compounded by the fact that deep sea businesses will also be lucrative given that many tourists visit the region. The housing for employees will not be a problem since the rates are favorable for all classes of workers. In addition, the social amenities, the infrastructure and the fact that the area is already a tourist destination will make it enjoyable for most employees and their families.
The infrastructure will also be beneficial to the company since production costs will be relatively reduced. The fact that the government of Aruba through the Aruba Economic Affairs has discovered the importance of investors in the economic development of the country means that relocation conditions will be favorable and there is surety of assistance from the government. The political stability that has continuously provided a favorable environment for economic growth is also boost to business. The choice of company location will be the stretch of coast on the North West because it provides a long coast line and the fact that it overlooks a wide span of the Caribbean ocean. The environment will be conducive both for expansion purposes and for research activities.
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C&C Company should move to Aruba immediately and establish a customer base in the market before other competitors venture. However, the company should ensure that its operations are in line with government policies regarding the conservation of the environment. Since C&C is totally relocating, it implies that the company will be compelled to employ some of the locals as a way of integrating smoothly into the society. Further research initiatives will also need to be conducted and complemented by effective global marketing strategies because customers may come from any part of the world. A special consideration should also be taken to ensure that employees are informed on time so that they can make the necessary arrangements in order to avoid inconveniences to the employees and to the company.
The resources needed for the relocation will be numerous but the advantage is that Aruba is easily accessible by sea so most of the equipments and even some of the staff members who are willing may travel by sea. The company will also need to acquire premises for the time being before identifying a suitable location that will be favorable for operations of the company, customers and employees. Other resources that will be needed is to identify and advertisement and marketing company to venture in marketing C&C in the region and in strategic places. A company lawyer conversant with the Dutch laws which have been adopted in Aruba and who is also knowledgeable with the business dynamics in operation will also be needed. The essence of the lawyer is to ensure that all legal formalities are adhered to appropriately in all business dealings and transactions to avoid legal problems in future. Other aspects of consideration will be to ensure that all properties that have been relocated to Aruba are registered with the authorities. The consideration of all these aspects will ensure that even when the company faces challenges they will not be ones that could have been avoided.