Strategic Business Decision Making: Drill and More Plc West Africa

This report assesses the strategic business decisions that Drill and More Plc, a multinational oil and gas company, should consider when expanding into West Africa, particularly after a major environmental disaster in the Gulf of Mexico. The report emphasizes the importance of pollution control methods, addressing both financial and non-financial factors such as environmental conservation, legal compliance, and community impact. By applying the PESTEL model, the company should focus on minimizing environmental degradation, obtaining necessary permissions from West African governments, and implementing measures to control dust and oil spillage. Financial considerations include budgeting for community relocation, environmental compensation, and infrastructure development like road construction to gain stakeholder approval. The report concludes that Drill and More Plc must balance operational costs with potential profits, fulfill policy promises, and prioritize environmental and social responsibility to ensure a successful and sustainable expansion into West Africa. Desklib provides access to similar solved assignments and resources for students.

Running head: BUSINESS DECISION MAKING
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Business Decision Making
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Introduction
Drill and More Plc is the one of the multinational companies dealing with oil and gas
processing. The company mostly operates within the United States of American and United
Kingdom. Within 20 years, the company has been more successful for oil exploitation especially
within the Middle East and USA. In the year 2015, the company experienced a big loss when
accidentally spilled large volume of the oil in Gulf Mexico affecting several biodiversity in that
aquatic ecosystem (Nyilasy et al, 2014 p.693). This disaster widely spread as it was reported by
both local and international media groups. The company was imposing a penalty of about $100
million by the environmental protection agency. The company spent over $500,000 for the
cleaning of the aquatic habitat and compensating the communities affected by the oil spillage.
This report is based on some of the suggestions that the management of Drill and More Plc
should do to effectively to deal with their prospective stakeholders in West Africa (Nyilasy et al,
2014 p.693). Considering that the Drill and More Plc is a multinational company operating in
the oil and gas processing, it should have a well-structured plan on how it will carry out its
process in West Africa. This report will discuss some of those factors that the company should
consider before making the decision of the whole process.
Pollution control methods
The fact that the company is all about oil and gas drilling process as well as contraction
projects, there will be definitely high pollution within the regions where it operates. If the
company does not come up with well-structured ways to minimize the environmental

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degradation and pollution, definitely it will not be allowed to carry out its drilling process by
both West African Government and nongovernmental organization (Brasier et al, 2011 p.32).
The mining and construction companies are responsible to control air pollution within the area
they operate. This is to avoid inconveniences with the environmental protection organizations
within such states. The management of Drill and More company should set up ways to minimize
the pollution effects during the drilling and road construction process and present their plan to
prospective West Africa stakeholders. The management should be able to explain the
effectiveness of their pollution control methods to the panel. The plan should be so effective so
as to make sure that it is accepted by the West Africa management for the project to be approved.
The management should first evaluate the reasons why it is receiving high rejections in acquiring
the licenses to start drilling in a new field. The fact that Non-Governmental Organization is
aware of other countries being irresponsible of conserving their environment, the company will
face high rejection from the Organization. It will be very effective for the company to consider
some factors before starting the drilling and the construction business process. The report will be
reflected mainly on the financial and non-financial factors that the company should consider
before taking a decision on the oil drill or diversifying into the construction business.
Non financial factors to be considered by the company management
Based on the model PESTEL the company will mainly be focused on legal and
environmental part of the model analysis. In application of the model, the company will consider
the strategic way in which the environment within the region of operation will be conserved
(Estes, 2018 p.525). Through application of PESTEL model in regard to environmental
conservation, the management of Drill and More company should make sure that it gives a clear

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way through which they will cover the region of operation with the dustproof materials. The
management will also have to consider the legal part of the PESTEL model by seeking the
authority from West Africa governments. The permission will be allowed only if the company
meets the standards of controlling the pollution and conserving the environment during the
process of drilling and construction of roads. The fact that the operational area will be more of
dust due to drilling process, the company should establish dust pollution control method to make
sure that the dust does not spread all over. The drilling area will be estimated and be covered
with a construction wall or the material which do not allow the diffuse of the dust (De Roeck,
and Delobbe, 2012 p.397). Dust pollution may cause health hazards in the nearby communities
and therefore it should be controlled to avoid such. The management should as well come up
with well-structured way through which it will control the dust challenge in the roads
construction zones to avoid affecting the nearby the community. The fact that the roads to the
drilling area should be constructed; a lot of people within those areas will be vacated (Dale et al,
2017 p.295).
In the case of marine life effects, the management of the company should come up with a
mechanism that will reduce the effect of the oil spillage in the marine ecosystem. First, the
management should approve the zero oil spillage on water services policy. They should provide
the policy to the West Africa stakeholders to make sure it is approved. The compensation penalty
should be well stipulated based on the oil spillage policy in case it accidentally happens.. The
company operation should be aimed at bringing a lot of the benefits to the West Africa region
due to the drilling process as well as making sure that the profit they will get after the whole
process is maintained.

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Financial factors to be considered
The financial factors that the company should consider includes, setting apart around
$600 million dollars to makes sure it constructs the temporary homestead for the people vacated
in the regions of operation. Another financial factor to be considered is that the company
management should set a budget of about $100 million dollars as compensation in case of any
damage or interference of the environmental nature in the region. In consideration of the
construction business, the management should focus on constructing the massive road networks
coasting around $4000 million that will interconnect various towns within the region of
operation. Construction of the road will be considered as the convincing factor to makes sure that
their proposal is accepted (Beale, and Fernando, 2009 p.26).
In conclusion, the management of the company should make sure they have calculated
the cost that they will incur for the start of the whole process. The company should balance the
cost of operation so as to make sure that it generates the profits after the mining process. In
addition, they should promise what they can offer to avoid any inconveniences during the
process. The manifestos offered by the company will be well monitored by the West Africa
government to make sure that the company operates within the agreed policies. It is therefore so
important to make sure that whatever they have written in the policy is doable and they will
fulfill every promise successfully. In keeping what they promised in the policy plan, I think there
will be no inconveniences during the process and they will not receive rejections in obtaining
their permits of the process.

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References
Beale, F. and Fernando, M., 2009. Short-termism and genuineness in environmental initiatives: a
comparative case study of two oil companies. European Management Journal, 27(1), pp.26-35.
Brasier, K.J., Filteau, M.R., McLaughlin, D.K., Jacquet, J., Stedman, R.C., Kelsey, T.W. and
Goetz, S.J., 2011. Residents'perceptions Of Community And Environmental Impacts From
Development Of Natural Gas In The Marcellus Shale: A Comparison Of Pennsylvania And New
York Cases. Journal of Rural Social Sciences, 26(1), p.32.
Dale, A.M., Jaegers, L., Welch, L., Barnidge, E., Weaver, N. and Evanoff, B.A., 2017.
Facilitators and barriers to the adoption of ergonomic solutions in construction. American
journal of industrial medicine, 60(3), pp.295-305.
De Roeck, K. and Delobbe, N., 2012. Do environmental CSR initiatives serve organizations’
legitimacy in the oil industry? Exploring employees’ reactions through organizational
identification theory. Journal of business ethics, 110(4), pp.397-412.
Estes, R.J., 2018. Eduard Pestel (1914–1988): a Pioneer in Social Indicators, World Systems
Modeling, Industrial Design, Politics and Public Policy. Applied Research in Quality of
Life, 13(2), pp.525-526.
Nyilasy, G., Gangadharbatla, H. and Paladino, A., 2014. Perceived greenwashing: The
interactive effects of green advertising and corporate environmental performance on consumer
reactions. Journal of Business Ethics, 125(4), pp.693-707.