Business Decision Making

Running head: MANAGEMENT
Business Decision Making
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1MANAGEMENT
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

2MANAGEMENT
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.