Business Assignment | Online Assignment

Please review the attached documents and link. Then provide a detailed answer to the Below listed question. The question is based on the document titled “WK7 Post”There is no need for a cover page.
Question/statement – According to the matrix RSPO Certification is considered to be the best alternative and Diversion Campaign is the worst. How do you feel about the validity of this type of decision making matrix? In details please.Reference Link – https://rspo.org/certification

Table 1 scores the Four Alternatives in relation to the Four Objectives, Scoring Range 0 – 3 where

0 represents the alternative does not meet the objective and 3 representing meets objective well.

The unweighted scoring results favor obtaining RSPO certification. This alternative met three of the four objectives well, however scored lower in the objective of maintaining profitability due to the incurred expense of at least one million dollars. Financing this certification, as well as any other costs associated with it that are revealed was the only drawback. Alternative number two, crop alternative came in second when unweighted scores were totaled. It failed to meet the certification objective, but since it did not incur the debt of certification, this alternative scored higher in the maintaining profitability category. This alternative did not address the environmental impacts of deforestation or Orangutan habitat reduction. The third alternative scored the worst out of all four, the diversion campaign only maintained profitability by avoiding the certification expense, did not increase sustainability, and its customer retention score depends largely on being able to give CAPO a different company/industry to target. The fourth alternative tied for second place in the unweighted results. It did not obtain certification or its related expense, but did score lower in profit retention that number one and two because of the added expense that will have to be absorbed in operations. Also for the reforestation alternative to maintain successful customer relations, CAPO would need to agree that the reforestation plan is sufficient to stop the picketing.

To determine the weights of the objectives the decision statement: “In responding to CAPO’s attacks, how will PPO keep their customers and continue to make money” was used.  The overall percentage that each objective was given was based on how well objective addressed the decision statement (“Evaluating the Alternatives Applying Sound Reasoning.”, n.d.). Two of the objectives were directly mentioned within the decision statement, maintaining profitability and retaining customers, so they were assigned equal values of 25%.  Since the objective of increasing sustainability was not directly mentioned its weight was slightly less at 20%. Obtaining certification was weighted the heaviest even though not directly mentioned in the decision statement at 30%.This is because it can address two of the three issues contained in the decision statement, “in response to CAPO’ attacks” and “keep their customers” are both addressed with this one action. CAPO will stop the attacks with sustainability certification and because of that PPO’s customers will be maintained. Even though the cost of certification will initially hurt profitability, the long term benefits are greater than short term harm.

MDQ model helped in coming up with the decision matrix in which several alternatives were considered against the objectives of PPO. The matrices showed that becoming a sustainable palm oil producer for PPO was the best alternative. A decision matrix provides a more logical approach that can utilize data collected and organizing that data in a fashion that the best alternative will be identified (White, 2015). The decision helps PPO to become more environmentally friendly also it is an ethical decision which is something most of the consumers and producers want. The matrices also showed that once you were prepared to forego RSPO certification there was no clear best alternative between the crop alternative and the reforestation effort. Both had merit in differing areas, but the reforestation scored higher in the customer retention piece, while the crop alternative offset that difference by scoring higher in the profitability retention because it did not involve a direct additional cost.

Conclusion –

The company was facing an obstacle that involved the CAPO petitioning in boycotting the PPO plantation due to the negative impacts palm oil production had on the environment, harm animals, and human mortality. The company used the MDQ model and a decision matrix to come up with alternatives and the company objectives. These types of decisions must be made out of sound reasoning and cannot be from emotion or instinctual “gut feeling” (Introduction to Quality Decision Making, n.d.). The end result is a decision to become a certified sustainable palm oil producer. PPO is confident in the decision that was made and in the process used to make it.

Evaluating the Alternatives Applying Sound Reasoning. (n.d.). Retrieved from: https://learn.umuc.edu/d2l/le/content/443328/viewContent/17647167/View

Introduction to Quality Decision Making. (n.d.). Retrieved from:  http://create.usc.edu/sites/default/files/publications/m01howa624601sec01.pdf

White, P. (2015, October 30). 3 Steps to Building a Decision Matrix: News & Insights Nexight Group. Retrieved from https://www.nexightgroup.com/3-steps-to-building-a-decision-matrix/