POLITICAL UNREST AND IMPACT OF DIFFERENT TYPES OF COSTS ON MANAGERIAL DECISIONS: A CONSPECTUS OF IN IRAQ, KENYA AND YEM
Publication Date : 09/11/2017
As businesses advance and cross borders, there are increased risks and challenges of social and political risks. There are dangers of political instability, corruption, change in regulatory framework, child labor practices, terrorism, public resentment towards certain organizations, environmental pollution, etc that have to be put into managerial decisions. In times of crisis and political unrest, Managers are faced with decisions that govern how a company reaches its revenue and profit targets which are in turn determined by the level of costs included in such decisions which ultimately impact the finances and sustainability of the company. The decisions so taken may include business expansion, dropping or innovation of products and new modes of communication and financial transfer/transactions, change of management tactics, cut off non-essential service or goods, labor shortage, high over-head expenses, scarcity and how to find new types of materials to replace present high-priced ones, Increase in the selling price and, priced to meet current costs. In times of political violence, there is urgent and dire need of commodities, coupled with material and labor Shortage, manufacturers may be forced to compromise with quality. At this time customers are less critical of quality as there are limited choices and the producer has no stiff competition. Though, for some manufacturers, prudence and the zeal for patriotism may call for a fair delivery for quality especially in the interest of the country and long term goodwill. The paper looks at businesses and their survival tactics in Iraq during the war from 2003 and the crisis in Kenya of post election violence in 2007/08 and finally looks at Yemen during the revolutionary movement that ended in 2012. These countries are also hampered by terrorism, and social threats like tribal skirmishes especially during election time. The paper posits that amidst war and turbulence businesses will service is they manage their costs prudently.
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