Due In 24 Hours, 1pm EST. Decision Making/Business Management Homework Assignment.RESPOND TO FOUR CLASSMATE POSTS

Samanta Banks 

Step 3: Building the Decision

Remaining in business and making a profit is PPO goal with this decision making the process. To accomplish their goal, they must address CAPO’s and PPO’s customers concerns in regards to the environment. PPO needs to reduce its environmental footprint by becoming a sustainable company and change the way they do business. The collection of data is essential in this step of the decision-making process because it ensures that all the available information is collected for the best possible outcome. It is critical to have all the related information for the current problem at hand. (Schmitz, 2016, para. 1). Having all the available data will assist PPO in completing their objectives of being environmentally sustainable, address CAPO’s and PPO’s customers concerns, gaining their certification, create a safe place for the endanger Orangutans and become financially stable.

Objectives:

1. Becoming environmentally sustainable.

PPO will ensure their future success by becoming environmentally sustainable. This will not only allow them to continue to be successful, but it will also address CAPO's and PPO's customers concerns.

2. Address CAPO's and PPO's customer's environmental concerns.

CAPO and PPO's customers have voiced their concerns in regards to the dangers of people and the Orangutans population in and around the palm oil production site. Addressing these concerns will allow PPO to stop the negative press they are receiving.

3. Gaining certification.

PPO can gain certification by merging with a company that is already certified, which will reduce their financial burden.

4.  Relocate the affected Orangutans and human population.

PPO can relocate the Orangutans to a suitable location and provide health care to the human population. 

 Looking into alternatives will also be useful in this step because it will ensure that all possible solution is looked at and analyze. Having the best solutions will ensure the best alternative (Gregory, 2013).

Some alternatives that will be considered are:

1. Do nothing, keep the business as it is, and hopes for the best.

2. Harvest the trees instead off burning them, which will reduce the harm to the environment.

3. Make the production of palm oil sustainable.

4.  Outsource the production of palm oil.

5. Get the public involved by launching a public relation campaign.

6.  Shut down operations/go out of business

Reference:

Gregory, R., Failing, L., Harstone, M., Long, G. McDaniels, T., & Ohlson, D. (2013) Step 3: Alternatives. Retrieved from Structured Decision Making. http://www.structureddecisionmaking.org/steps/step4consequences/consequences3/

Schmitz, T. (2016). Gathering Information.

Retrieved from https://www.conovercompany.com/gathering-information/ 

Chelsea Long 

How to Start Gathering Information- Alternative Outcomes and Consequences:

I am going to find creative alternatives (Gregory, et. al. 2012, p1) for PPO’s objectives that support the decision statement “In responding to CAPO's attacks, how will PPO keep their customers and continue to make money?”. I will need to go over the coasts and weigh the benefits and negatives of each option. I will also need to find out what other companies are doing and what they are charging for their products so that we can follow a good example of what they are doing.

 I will be able to find this information by researching online, obtaining multiple quotes from professionals, and speaking with other company managers.  Although I will trust most of this information, I will need to look at multiple as sources as one source may be bias to find the appropriate actions for PPO. Gregory, et. al. also writes that one should “Report the level of agreement and disagreement among experts; this is important information for decision makers” (2012, p2) this will allow PPO to make the most informed decision with the information at hand. I feel that the only thing stopping me from finding information may be from the help other managers as they may not be willing to help a competitor.

Objectives:

1. Environmental Sustainability

In order to continue producing and profiting with PPO the company must find a way to become environmentally sustainable.

     2. Gain Certification

In order to please customers, stockholders and CAPO PPO must become certified. Without certification all other changes implemented will not improve public relations.

      3.  Protect Orangutans

As PPO faces many challenges with becoming more environmentally friendly, one of the priorities must be to protect Orangutans and their environment. In doing so CAPO and customers will be pleased to see improvements.

      4. Customers and Stakeholders

Without customers and stakeholders PPO will cease to exist. Without continued support of PPO’s customers and stakeholders any plans of the company growth will be limited and therefore PPO must hold itself accountable and make necessary changes to ensure their support and continued profits.

Alternatives:

1. Reforestation:

To become environmentally sustainable, certified, and keep customers and stakeholders PPO can make a plan to plant trees in different areas for each tree that is destroyed due to the production needs of PPO. Not only would this allow PPO to become environmentally sustainable,  but would also help to please customers and stakeholders as well as improve the process of becoming certified.

    2. Merge with a certified company:

        While PPO is in the process of becoming government certified as a sustainable producer on its own, certification can cost around $1 million. As a family owned company this may be hard to come by in such a short time frame, and merging with another company that isalready certified would not only help PPO financially but also ensure that the customers and stakeholder as well as CAPO would be pleased. While a merger may sound daunting it would have several benefits that would not only make a list of people happy faster but it would also give PPO the positive influences we would need to accomplish all of our goals in a shorter time frame.

    3. Press Conference:

        PPO will need to hold a press conference and keep an open discussion as we transition to ensure that we are clear about the changes that are being made. This will ensure that CAPO  and our customers feel that their concerns are being heard and we are holding ourselves accountable.  

        4. Status Quo 

PPO could also ignore all of CAPO attacks and choose to do nothing to save the company. This would be devastating as PPO would lose customers, stakeholders and profits all together.  

References

Gregory, R., Failing, L., Harstone, M., Long, G., Mcdaniels, T., & Ohlson, D. (2012) Structured       

       decision making; A practical guide to environmental management choices. Retrieved from

       https://books.google.ca/bookid=hTZSkaZ4zOkC&printsec=frontcover&dq=isbn:1444333410&hl=en&sa=X&ei=xvL7UZ2KI8j9igKB9oCABQ&redir_esc=y#v=onepage&q&f=false 

Brandy Navarijo 

BRAINSTORMING ASSIGNMENT FOR WEEK 5:

Decision Statement: In responding to CAPO’s attacks, how will PPO keep their customers and continue to make money?

GATHERING INFORMATION

When making any type of decision, big or small the first step is to gather the information. All the information you gather should come from reliable sources and/or trusted friends. Schmitz (2016) tells us that there are five steps to follow to make the process of getting information easier. 1. Ask the right questions. For PPO, what are they trying to accomplish? 2. Find information sources. For this some internet research might be helpful. It will also help to fact find information given to PPO when/if they ask CAPO for help to become sustainable. They might be extreme left or right and suggest things that either you are unwilling to do or unable to do. 3. Find the information you need from your sources. Sometimes you can have more information then you need, and the process gets bogged down. Like a word problem in math. Use only the information necessary to find answers to questions that you have right now. Right now, PPO needs to keep their customers and continue to make money. Any more than that and you could be jumping ahead of yourself. 4. Apply your own knowledge and experiences. As the plantation production manager, the knowledge and experience of what is right and wrong and what can be fixed could be right there. For example, experience will tell you to not cut down the newest plantation. That would be counterproductive. 5. Consider many sources. Ask the owner, stakeholders, CAPO, environmentalist, do research on the internet and ask companies that are already sustainable how they did it. Put all the information on the table (so to speak). That starts the next process of creating alternatives.

First order of business. Restate the objectives. From there and also from the information that has been gathered, you can look at alternatives.

OBJECTIVES:

Objective 1 – stay in business. This is a family owned business and Abdul Tengku wants to leave the business to his family (case study, p 5, para 2). This cannot happen if the business continues to operate the way that it does. Its production process is harmful to both animals and humans. No customer wants to use a product that does that. PPO, Abdul Tengku and the production plantation manager believes that there is a solution that allows for all goals to be met.

Objective 2 – continue to make money. Just because the company is open for business does not mean that it does so with a profit. One of the main objectives from the decision statement is to make money. PPO’s current annual revenue is $24,090,00M dollars (case study, p 5, para 2). The objective is to continue that tradition and maybe increase that profit margin further down the line when most of the issues have been resolved.

Objective 3 – With the family business, Abdul Tengku does not want to just create a product, but he wants to make something that customers are happy to use. If customers and contractors know that the item that they use is environmentally friendly and some of the profit goes to help save orangutan’s, then this might increase their happiness of the product. If sitting down with the environmentalist and figuring out a way forward and find solutions, then that is what needs to be done (case study, p 3-5). Hurting the environment and those that live within it, does not consist with the values and beliefs that PPO holds dear.

Objective 4 – Save the environment. This continues along the line of objective 3. PPO wants a product that people want to use. It does no good, if while producing it, it destroys the very environment that helps the palm trees grow. If the soil is healthy, then the trees will grow better.  The goal was never to destroy the environment that they live in. There needs to be a plan moving forward that instead of destroying the environment, help it and does so with the least hurtful impact to the soundings (case study, p 3-5) .

Objective 5 – Cause no further harm to others. What if one of those people that gets injured or killed is one of the employees at the company or a family member? What happens with PPO (along with other plantation owners) have to tell the children that they are the reason that orangutans no longer exist? Or that the environment has changed for the worse because of them? PPO needs to find a way to change the way they do business. It needs to start with helping the environment instead of hurting it. This needs to be a collective effort. PPO does not have to figure out the solutions by themselves. They can have a round table discussion and bring other plantation owners and researchers to the table and figure out better ways to conduct business while saving the environment (Palm Oil and The Environment, 2019).

From here, start looking at alternatives. Remember, good solutions are not possible without good alternatives (Structured Decision Making, n.d.). They should be value-focused based off of the values of the owner and PPO. If it goes against them, then they probably will not get used. They need to be technically sound. If an alternative is to use water, then how will that happen? The alternatives need to be clearly stated, and easily defined. If you have to explain it because it does not make sense, then either reword it, or try a different approach. Once you look at the alternatives, review each and see what you will keep and what you throw away. They need to present actual ways to help PPO achieve their goals and objectives. And lastly, work with the people involved in the process. Everyone involved need to come to a collective agreement on how the company will meet the goals. It will ultimately be the decision of PPO, but it will be easily on trade-off if everyone knows that everything has been done to solve the problem. Compromise might be hard, but not everyone will or can be satisfied.

CREATING ALTERNATIVES:

Alternative 1. Find ways for PPO to get their certification. If this means a pay cut for leadership for a couple of years, then it should be collectively agreed upon. Maybe finding ways to cut costs (without employee’s pay) can be another way that PPO can save the money to buy their certification. What is the fastest way to earn the money? What is the longest time to earn the money?  What is the deadline that the company has set for itself?

Alternative 2. Hire a PAO and/or an environmentalist. They can collaborate with CAPO to find ways to become sustainable. They can also make sure that as the company moves forward, they do so in a professional way that does not harm the company’s image. One of their jobs could be to help remarket PPO’s product. They also might cost more money than the company wants. But think of the old saying, “It takes money, to make money.”

Alternative 3. Find alternative sources to grow instead of palm oil. This could be the beginning of a brand-new company. Instead of PPO selling palm oil, why not grow something that helps or doesn’t destroy the environment. What could lower PPO’s carbon footprint? What will make money for the company?

Alternative 4. Partner with other companies in the region. Form a group of like-minded farmers and being sustainable together. That way two groups of different people are looking at solving the problem instead of just one.

Alternative 5. Do nothing. Maybe CAPO will get tired and just go away. Maybe customers love their palm oil more than the environment. What is the average number of customers that actually switch products so they can say they are more environmentally friendly?

Alternative 6. Sell the company. Sell the company and get out while the money is good. With the profit from selling it, Abdul Tengku could go into a new business or retire.

Here is the Decision Matrix. At this point, the numbers are only 0 and 1. Did the alternatives meet the decision statement and objectives or not?  More can be added later when talking to the stakeholders (and more brainstorming).

 References.

Structured  Decision Making. (n.d). Structured Decision Making. Step 3:Alternatives. Retrieved from http://www.structureddecisionmaking.org/steps/step3alternatives/

Schmitz, Terry. (2016, 5 August). Gathering Information. Conover. Retried from https://www.conovercompany.com/gathering-information/

White, Patrick. (2015, October 30). 3 steps to building a decision matrix. Nexightgroup. Retrieved from https://nexightgroup.com/3-steps-to-building-a-decision-matrix/

Palm Oil and The Environment (2019). MPOC. Retrieved from http://www.mpoc.org.my/Palm_Oil_and_The_Environment.aspx

Gregory Johnson  

Gathering Information

Perfect Palm Oil (PPO) is a family owned business that commenced in 1998. The business deals with production of palm oil. The PPO is operating through its three palm oil plantations. Notably, palm oil is considered to be the leading vegetable oil consumed globally. Palm oil is found in almost all products available in the products supply chain all over the world. Its demand has been on the rise translating to more benefits towards economies of production countries. Nevertheless, despite its ultimate importance, palm oil production has resulted to severe detrimental effects on both social and environmental aspects. Massive deforestation due to the rising growth of palm oil plantations has endangered existence of Orangutans. Also, there have been increase in mortality rates for people living in palm oil production zones due to exposure to pollutions caused during harvesting processes of palm oil(D’Antone & Spencer, 2014). Both deforestation and burning of forest has damaging effects on general climate due to their vast carbon emission into the atmosphere. As a result, global warming is inevitable to due to continuous emission of carbon in the air. Consequently, numerous concerns have erupted leading to formation of group activist that are opposed to the production of palm oil. The opposition to palm oil production has manifested in different forms. One, is the call to have termination of use palm oil in all companies that uses the product. Second, is upholding use of sustainable palm oil to all companies that uses palm oil. Third, is staging of boycotts and protest with aim of consumer awareness of the detrimental consequences emanating from palm oil usage.  

In respect to the underlying societal concerns regarding palm oil production, it is inherent for PPO management to address those concerns. To begin with, the PPO has to comply with voluntary certification as a primary move to uphold sustainability. The company need to ensure that it does not engage in any deforestation in quest for more plantations. Moreover, the PPO should desist from slash and burn way of expanding their planting land. The company should uphold human rights by not engaging in any violations of human rights in the course of palm oil production (Sheil et al 2009). PPO is supposed to comply with the applicable laws that are governing the production of palm oil. The company should engage in responsible development of new plantings now that some of its plantations are ageing. PPO should give assurance of not expanding its production on forested areas. Also, the company should focus on adhering to the best practices laid down for palm oil producers. Finally, the company should seek to increase productivity in yields of the already existing production land.  

Alternatives

Sustainability of palm oil production is the ultimate goal in minimization of carbon emission. Therefore, there are several alternatives that PPO company can adopt in its quest of achieving sustainability as well as viability.  The company can venture into other environmental friendly vegetable oil apart from palm oil. Instead of replacing the old plantation with new palm oil, the company can start producing other vegetable oil (D’Antone & Spencer, 2014). The company can adopt new technologies and mechanism to boost the ageing plantation to increase its productivity. The company to borrow loan to ensure that it is officially certified to enhance the market survival. PPO should ensure that no slash and burning method is used in removal of old plantations. The company should seek areas not under forest when expanding its production area.  

References:

D’Antone, S., & Spencer, R. (2014). Concerns and marketization: the case of sustainable palm oil. Concerned markets: economic ordering for multiple values. Edward Elgar Publishing, Cheltenham UK, 72-101.

Sheil, D., Casson, A., Meijaard, E., Van Noordwijk, M., Gaskell, J., Sunderland-Groves, J., ... & Kanninen, M. (2009). The impacts and opportunities of oil palm in Southeast Asia: What do we know and what do we need to know? (Vol. 51). Bogor, Indonesia: Center for International Forestry Research.