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The Pacific Palm Oil (PPO) is being pushed by one major trigger in regard to decision making. Pacific Palm Oil understands that the oldest factory has its production declining, and this means that the factory is coming to an end. Therefore, the company will need to pass through a tree replanting phase to replenish or to revive the factory. It is not only the old factory that has its production cycle coming to an end as even the second factory if following closely behind its need, and this also risks ending the productions cycle. The major problem with the issue is that the three plants are vital to the company as they contribute the Pacific Palm Oil level of production and therefore, in the event that one of the factories is unable to attain its contribution of output, the PPO Company will experience hardships in reaching their optimum level of production.
The goal of the plantation manager in the company is therefore to make a decision that will help the company in achieving or finding a way that will help keep the company’s contracts to their customers while at the same time addressing their declining production. Therefore, the decision being made will focus on the future and can, thus be termed as a strategic decision, which involves choosing the right path that will lead to achieving the set goals. For the Pacific Palm Oil Company, the production manager will, therefore, be forced to make a decision that will not only address how to keep the customers’ contracts but also enhance their future production. However, the company will also be required to address the threat that is posed by Consumers Against Palm Oil (CAPO) which as well has been a pain in the neck. The failure to address the two issues that are the CAPO and the customers’ contracts, then it would imply that the company can collapse at any time. The company can, therefore, make one major decision to solve the two problems or address the issues separately, beginning with the most immediate threat.
Managing operations refers to running well on the chosen road (Judd, 2013), and this has been the emphasis of the CAPO, and this has increased the protests against palm oil. Therefore, the Pacific Palm Oil Company will have to devise a way of appealing the CAPO while at the same time focusing on the future problem as well.
Possible decision statement 1: The Pacific Palm Oil Company will be required to expand its operations to another country. Despite this decision having to take a lot of time in choosing another country, planting trees and get the initial harvest, it will be a wise decision. Currently, all its three factories are functioning, and therefore, it is the best time to build another factory in a new country since the old factory will be out of operation in a few years.
Possible decision statement 2: The Company will have to import palm oil from other countries as this will provide enough time for the replanted plantations to mature. As a result, the company will be forced to halt further destruction of the rainforests. This decision will favor CAPO and wildlife, especially the orangutans who are on the verge of extinction in the region. The company used to clear the rainforest to match the increasing demand for palm oil, and this led to the destruction of biodiversity, and this can be explained by, “But to produce palm oil in large enough quantities to meet growing demand, farmers across Southeast Asia have been clearing huge tracks of a biodiversity-rich tropical rain forest to make room for massive palm plantations” (Miniscalo, 2008). Finally, importing will provide the new outsourced locations for palm oil plantation time to begin production. Importation of palm oil will be expensive, but the cost will be offset by the waived labor costs and taxes, and this makes it ideal.
The decision statement in responding to CAPO’s attacks on how the company will be able to continue making money while at the same time retain their customers is valid as it lets the people aware that the company is not reactive but proactive, as the decisions are made prior to the crisis, while reactive decisions are made after a crisis. “Decisions are declared by human beings. Sometimes they arise when we have what philosophers call a break in our existence—some change in our circumstances— that impels us to declare a decision. We can consider these decisions as reactive to the change” (Howard & Abbas, 2015). The decision statement retains the initial goal of retaining the customers and making money while ignoring others such as deforestation, CAPO’s appeals and the orangutans. Based on this, the decision might not be correct since the company will continue producing palm oil.
References
Abbas, A. E., & Howard, R. A. (2015). Foundations of decision analysis. Pearson Higher Ed.: Retreived from: http://create.usc.edu/sites/default/files/publications/m01howa624601sec01.pdfMiniscalco, E. (2008, December 11). Is Harvesting Palm Oil Destroying the Rainforests? Retrieved from: https://www.scientificamerican.com/article/harvesting-palm-oil-and-rainforests/Judd, B. [Strategic Decisions Group] (2013, November 30). Fundamentals of Decision Quality. Retrieved from: https://youtu.be/dFV-lzIqfRA?t=4Universal Class, (2020). Applying the Process for Making Decisions. Retrieved from: https://www.universalclass.com/articles/business/applying-the-process-for-making-decisions.htm
