PPO case
As the PPO case intensifies, it is crucial to derive the fundamental objectives when framing the decisions. From the six objectives, the weaker ones include the concern about the Orangutan and the need for certification. However, it does not imply that these objectives are lesser essential. The company should work on the rest and with time to ensure the sustainability of oil production. in the end, for certification and recovery of the Orangutan population should be addressed too once the other objectives are achieved.
The other four objectives are weighty for various reasons, as described in the initial post. These objectives are defined by the purpose, scope, and perspective behind the framing. Therefore, the four objectives meet the threshold and should be addressed.
Customers are critical components for the company, and they should be given the utmost priority. It will be a disaster losing the current customer. The production level should remain high to meet the customers’ demands. Also, these customers will play a significant role in the business expansion and sustainability of oil production. Revenue generation would not be possible without a sizeable market share; hence, the customers are a significant component.
Secondly, finances should be a principal objective for the PPO to ensure continuity in the production level. Lack of adequate funds will bring oil production to a standstill, whereas the whole process will be unsustainable. The financial position of the PPO will determine if the other objectives are achievable too. Therefore, all the operations should be geared toward minimizing the costs to increase account receivables.
Third, the environmental impact is a global concern, and PPO should make it a priority too. Oil production leads to cutting down trees, which further contribute to land degradation. As a result, the orangutan population is at risk, but the priority should be to ensure that the company takes the environmental components with adequate seriousness.
Lastly, the CAPO objective that PPO should take caution to avoid future promotion that may be costly to get back the market share. Therefore, a change in business model is vital for PPO to overcome the perennial problem witnessed in the company on financials, given the pending court battles.