Running head: PPO CASE STUDY 1
PPO Case Study
Student
Institution Affiliation
Date
PPO CASE STUDY 2
Weighing and Ranking Alternatives
PPO faces threats that could affect its survival in the next few years. Its involvement in
Palm Oil plantation has caused serious environmental concerns. Orangutans have been projected
to go extinct should companies like PPO continue largescale plantation of Palm Oil. As a result,
environmental groups and activists have come up with campaigns to discourage people from
consuming Palm Oil products. Based on this scenario, PPO came up with a few objectives and
alternative solutions it could explore in order to remain in business and make money.
Objectives
Objective Weightin Short-term Profitable Encourages Laying off Legal Total
g Sustainability employees Problems Value
Scor Tota Score Tota Score Total Score Tota Score Tota Score
e l l l l
Remain in 5 5 25 5 25 3 15 1 5 3 15 85
Business
and make
money
Promoting 4 5 20 4 16 5 20 1 4 1 4 64
sustainable
plantation
Maintain 3 5 15 5 15 1 3 1 3 2 6 42
the same
amount of
profit
Increase 2 1 2 5 10 3 6 3 6 5 10 34
profit
margin and
customer
base by
20% in
five years
PPO CASE STUDY 3
The decision matrix above provides different weights of objectives PPO has. The main
objectives that the company can adopt are remaining in business and make money and promoting
sustainable plantation of palm oil. These objectives have the highest values when assessed under
factors like durability, profitability, sustainability, number of employees and legal issues the
company can be faced with.
Alternatives
Alternative Weightin Business Profitable Increase Satisfy Satisfy Total
Decisions g Survival Costs environmenta shareholder Value
l groups and s
activists
Score Tota Score Tota Score Total Score Total Score Tota Score
l l l
Engaging in 7 5 35 3 21 3 21 5 35 4 28 140
sustainable
plantation
Come up 6 3 18 3 18 3 18 5 30 2 12 96
conservation parks
to house
Orangutans
Reduce number 5 4 20 5 25 5 25 1 5 3 15 90
of employees
Invest in 4 4 16 4 16 1 4 1 4 5 20 60
marketing
Invest in a strong 3 4 12 2 6 2 6 1 3 5 15 46
legal team
Educate 2 5 10 4 8 5 10 5 10 5 10 48
employees on
better ways of
dealing with
CAPO
Conduct a survey 1 5 5 1 1 5 5 5 5 5 5 21
to know what
customers want
PPO CASE STUDY 4
In the above table, the available alternative decisions have been arranged in descending
order based on the assigned weights. The alternatives have then been assigned values based on
the perceived performance under factors such as business survival, profitability, the cost to
business, the effect on shareholders and external groups like CAPO. From the above table, the
company needs to engage in sustainable production of palm oil to remain in business and make
money. This will ensure business survival, profitability, satisfaction to shareholders, and
environmental groups like CAPO. However, in choosing this decision, the company will have to
incur lots of costs that relate to sustainable production.
There is a big gap between the alternative with the highest score and the rest. This is
attributed to different elements such as high costs, inability to appeal to shareholders, and
business survival threats.
Evaluating Outcomes
The most viable decision PPO can make is to switch its production to conform to
sustainability. This will require different areas of the company to undergo an overhaul to
correspond to the needs and requirements of this decision. One of the expected outcomes under
this decision is an increase in cost. The company will have to spend lots on mechanisms and
systems that are proven to support sustainability in production. This will also result in a slight
decrease in profits but once fully operational, the company will be profitable. I general,
successful implementation of this decision will ensure that the company fulfills its main
objective of remaining in business and being profitable.
PPO CASE STUDY 5
Appraisal of the Decision Process
The process of coming up with this decision involved careful analysis of the different
alternatives and assigning weights and scores based on their relevance and viability (Khatri &
Ng, 2000). As a result, intuitive reasoning was applied. Critical thinking also played an important
role in the decision-making process. Enough data was gathered to help arrive at the decision.
PPO CASE STUDY 6
References
Khatri, N., & Ng, H. A. (2000). The role of intuition in strategic decision making. Human
relations, 53(1), 57-86.
