Framing the Decision
In the second step of decision making, the focus would be on using the available time and resources to define the purpose, scope, and perspective of the decision to be made. Clarity is essential at this step in determining success. Therefore, there is a need to have the right decision framing to make the right decisions. Based on the PPO and CAPO struggle, the three aspects will play roles as elaborated below.
Purpose
PPO has no obligation but to meet the demands made by CAPO in terms of observing the right environmental behaviors that will minimize the current damages. As a result, PPO will have an opportunity to address this concern as well as putting many efforts in enhancing sustainability in palm oil production. The purpose of this approach is to make sure that PPO remains in business, register success, and make profits (UMGC, 2019). For example, one way of framing would have decisions that will lead to short-term profit loss that will ensure there is a long-term solution for environmental issues that have been advocated by CAPO. As a result, PPO will have achieved its objective as it receives profits for the long-term. Don't use plagiarised sources.Get your custom essay just from $11/page
Scope
It is vital to look into the concerns at all levels and the origin of these complaints. In this case, threats made by CAPO should be a primary focus to ensure the PPO’s function are not marred with a series of protest and lawsuits that will reduce revenue. PPO will have to ensure the environmental concerns brought by CAPO are given priority in related matters. For now, the focus should be on CAPO’s problem before the company can embark on its internal activities.
Perspective
The problem at hand is complicated, and each stakeholder should be involved in giving the perception and assess CAPO environmentalists and from PPO’s customers. PPO should be more environmentally friendly to continue operations in this current market, where people are looking to do business with companies that are concerned about the environment and their environmental footprint.
The meaning and purpose of using objectives in the MDQ model are to help the decision-makers to get a breakthrough for hard situations and to come up with creative ideas about alternatives. the alternatives must be comparable consistently and transparently to define the differences and gains to be achieved using them (Structured decision making, 2019).
Biases and Traps
In this decision making process, there are specific biases and traps that PPO should be keen to avoid to deliver justified and acceptable objectives. Therefore, when plotting for alternatives to deal with the current problem, they should not be meant to help the company alone. Instead, the customers and other stakeholders should be considered (UMGC, 2019). As the PPO tailor sustainable development, the decisions would equally be acceptable and fulfilling for CAPO. The decisions should avoid the trap of being greedy and self-centered.
Possibilities of PPO using these six objectives in the MDQ model
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 (Decision Education Foundation, 2019). 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 (UMGC, 2019). 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 (Decision Education Foundation, 2019). 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 (UMGC, 2019b).
Lastly, the CAPO objective that PPO should take caution to avoid future promotion that may be costly to get back the market share (UMGC, 2019b). 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.
References
Decision Education Foundation (2019). It’s Your Choice – Frame and Perspective, Retrieved from
https://www.decisioneducation.org/its-your-choice-episode-6
Structured decision making (2019). Step 2: Objectives, Retrieved from https://www.structureddecisionmaking.org/steps/objectives/
UMGC (2019a). It’s Your Choice 6 Frame the Role of Perception Transcript, Retrieved from https://learn.umuc.edu/d2l/le/content/420231/viewContent/16174239/View
UMGC (2019b). It’s Your Choice 7- Frame Scope Sizing up the Decision Transcript, Retrieved from https://learn.umuc.edu/d2l/le/content/420231/viewContent/16174240/View