Business Decision Making

The report provides an overview of the financial and the non financial factors that Drill and More Plc must take into consideration before making a decision on oil drill or undertaking diversification into construction business. The company is in the process of acquiring a government license from a smaller West African country for drilling oil in the year 2019. But a campaign was launched against the company by Non Governmental Organization in receiving the license for the new field stating the negligent environmental practices of the company in other countries. So the business took to diversification into the construction business. However, the consideration of the non financial and financial factors would help the company in better decision making.

Running head: MANAGEMENT
Business Decision Making
Name of the Student:
Name of the University:
Author Note:

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Introduction
The report provides an overview of the financial and the non financial factors that Drill
and More Plc must take into consideration before making a decision on oil drill or undertaking
diversification into construction business. The company is in the process of acquiring a
government license from a smaller West African country for drilling oil in the year 2019. But a
campaign was launched against the company by Non Governmental Organization in receiving
the license for the new field stating the negligent environmental practices of the company in
other countries. So the business took to diversification into the construction business. However,
the consideration of the non financial and financial factors would help the company in better
decision making.
Discussion:
Outlining Non Financial Factors or PESTEL Analysis before Decision Making
Political: The oil rich West African country like Ghana became the victim of lawlessness
and corruption soon after its independence and hence could not prosper despite the rich resources
(Pettigrew 2014). The country regained its momentum after the election of the first prime
minister. There were increasing political tensions in the country between the two political
parties. The economy of West African countries stabilized after the introduction of 1992
constitution. Hence, Drill and More Plc should understand that this particular constitution
allowed the president in electing his own cabinet for helping him in assisting the state. Here each
of the government seems to select the own party supporters for the key positions. The company
should also consider that fact that although the judiciary remains free from governmental

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influence but the process remains slow. This is necessary for not only obtaining license for the
oil drill but also undertaking diversification into the construction business.
Economic: In the West African countries the exports of gold, cocoa and oil acts as major
revenue generator. Gold and Cocoa accounts for close to 70 percent of the exports of the country.
It is also to be noted that the heavy dependence on these commodities adds no value and exposes
the economy to economic and vulnerable shocks. In other words, the fall in prices of these
commodities badly hurts the economy. Drill and More Plc that is looking for an expansion in the
West African countries for diversification into the construction business should also understand
that these countries require major reforms for contribution towards GDP. In obtaining the license
for its oil drill Drill and More Plc should consider that although discovery of the oil reserves
seemed bright but had a tendency of decline unless newer reserves are explored (Tchamyou
2017).
Social: The West African countries have various religious and cultural groups but it did
not give rise to the ethnicity issues (Cohen 2013). Drill and More Plc should also take into
account how the government of the countries of West Africa put across various policies for
improving the social structure. Although there have been instances of violence between the
ethnic various groups but they hardly played a key role in shaping policies at the national level.
Before decision making Drill and More Plc should also consider the fact whether the discovery
of the oil and the diversification into the construction business proves to be harmful for the
nation in case its political leaders starts consuming its revenue for strengthening the political
standing instead of the economic development which is often the case of the developing nations.

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Technological: The countries of West Africa require technological development. The
Drill and More Plc should consider the fact that although the rulers have the aim of transforming
some of the countries of West Africa into a technologically advanced state but their dreams
remains unfulfilled due to the increased reliance on the export of the commodities, frequent
failure of power, deficiency in the industrial development, increased dependence on the import
of the food and the other goods, insufficiency in the efforts of creating and innovating newer
solutions and the incapability in the implementation of the modern tools (Zoogah, Peng and
Woldu 2015). The company should also consider higher rates of poverty and illiteracy that plays
a menace in determining the actual potential of the region. This will help the company in its
decision for obtaining a license for the oil drill and decide on its diversification into the
construction business.
Environmental: The Drill and More Plc should consider the alignment of the World
Wide Fund (WWF) for nature with the various NGOs in countries of West Africa for the
preservation of the not only the forest life and forest but also provided advice on the planning of
the land usage while obtaining the license for oil drill. Besides, for diversification into the
construction business, the company should also consider the key challenges faced by countries of
West Africa include illegal mining, waste management, deforestation, logging, management,
water, air and noise pollution (Jackson 2013). The company should also note that there has been
NGOs who has been providing an aid for enhancing the awareness of the environmental
activities thereby stating the benefits for both the present and the future generation.
Legal: Drill and More Plc should consider that the countries of West African country like
Ghana neither put any budget restraint nor it prevent the economy in flourishing at the expense
of the military and the defense expenditure and also prevents local inhabitants in indulging into

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the act of civil disobedience (Luiz and Stewart 2014). The army had not only maintained peace
within country but also aided United Nations in maintaining various peace keeping operations.
This will not only serve advantageous for its new exploration in oil drill but also its
diversification into the construction business.
Outlining the Financial Factors before Decision Making:
The GDP of West Africa has been found to outpace the growth of the world in past and
has experienced a continued growth at average rate of close to 5.4 percent till the year 2016.
Some of the West Africa like Ghana and Nigeria experienced GDP growth of close to 7 percent
between the year 2011and 2016 (Devarajan et al. 2013). Some of financial factors that Drill and
More Plc needs to consider for obtaining license in oil drill as well as diversification into the
construction business includes larger and fastest growing labor force that reaches closer to 1.1
billion, enhanced levels of urbanization as close to 40 percent of the Africans lives in the cities,
enhanced power of spending with steady growth in the per capita income and enhanced stability
in the financial and the regulatory Sector. The stability of the last sector has been due to keen
interest of the African government on improvement of the infrastructure thereby ensuring the
right regulatory and the economic environment in attracting foreign direct investment grants
along with adoption of programs targeted towards the industrial development (Akudugu 2013).
Conclusion:
On a concluding note, it can be said that although countries of West Africa offers
abundance of opportunities in exploring the hydrocarbons but Drill and More Plc needs to
consider the various political, economic, social, technological, environment and legal factors

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along with the financial status before undertaking a decision on newer exploration as well as
diversifying into the construction business.

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References:
Akudugu, M.A., 2013. The determinants of financial inclusion in Western Africa: insights from
Ghana. Research Journal of Finance and Accounting, 4(8), pp.1-9.
Cohen, A., 2013. Custom and politics in urban Africa: a study of Hausa migrants in Yoruba
towns. Routledge.
Devarajan, S., Go, D.S., Maliszewska, M., Osorio-Rodarte, I. and Timmer, H., 2013. Stress-
testing Africa's recent growth and poverty performance. The World Bank.
Jackson, T., 2013. Reconstructing the indigenous in African management research. Management
International Review, 53(1), pp.13-38.
Luiz, J.M. and Stewart, C., 2014. Corruption, South African multinational enterprises and
institutions in Africa. Journal of Business Ethics, 124(3), pp.383-398.
Pettigrew, A.M., 2014. The politics of organizational decision-making. Routledge.
Tchamyou, V.S., 2017. The role of knowledge economy in African business. Journal of the
Knowledge Economy, 8(4), pp.1189-1228.
Zoogah, D.B., Peng, M.W. and Woldu, H., 2015. Institutions, resources, and organizational
effectiveness in Africa. Academy of Management Perspectives, 29(1), pp.7-31.