Decision Analysis for Fuel Equipment Purchases at Fuels Inc.

Posted: June 7th, 2024


Bob Mackey faces a serious challenge as he is the principal shareholder in Fuels Inc., and he has to make a very important decision concerning purchasing fuel equipment. The decision is of an investment nature. At the same time, one has to choose the equipment that might meet the company’s requirements while also not remaining as old fashioned as the other companies in an environment where competition is tough and companies are trying to emerge (Davidaviciene et al., 2020). The specifications of Panther, Knight, and Job Billow’s shutdown offer the main cause which is supposed to be analyzed by Bob. Consequently, the aims and objectives of our drilling company should remain consistent and inclusive in a bid to meet the demand of oil and gas industry.

Type of Decision

Bob Mackey, the leader, the capital investment choice is a strategic toolworthy of note. This decision covers the aspect of selecting the utmost effective fuel equipment, that is totally compatible with Fuels Inc. and having the valid reason of nonstop operations even in the competitive environment (Lăzăroiu et al., 2020). This choice should be done after the meticulous analysis of economic impacts which will include short-run and long-run effects and also changes of speculations.

Decision Criteria

When Bob analyzing the pros and cons here, he considered the whole set of the criteria and Fuels Inc.‘s strategic visions and financial objectives. It is very important that the evaluation consists of a comprehensive analysis of the amount of money which is spent for both the expenses of the initial investment and potentially further long-term operating costs which may be linked to every piece of equipment suggested. Performance indicators are paramount and a phase-wise review of the technical specifications and capabilities of each of the equipment is inevitable to be in compliance with the operating requirements of Fuels Inc (Kozioł-Nadolna & Beyer, 2021). Identifying market flexibility is equally critical as the chosen equipment should show relatable to changes in market conditions, making Fuels Inc. adapt responsively to either favorable or unfavorable markets.

Application of the Six Steps of Decision-Making Process

The decision for Bob is to pick the best fuel machinery for Fuels Inc. The way to have it done is to get price tags, specs, trends on the market, risks available for Panther, Knight and JB billow. Applying decision criteria, evaluate the alternatives in terms of both short-term and long-term implications, with the aim of Fuels inc. arriving at a recommendation with the preferred alternative returning the most overall value. On the basis of the figures given, the JB billow is the best solution for the Fuels Inc. in the market that could be a favorable one as well. The cost of the company’s courier service at launch is $50,000 which is much lesser than the two options mentioned above (Panther and Knight) and thus there will be cost savings for the organization (Davidaviciene et al., 2020). Even in harsh market conditions, where cost becomes the essential factor, JB Billow is the ultimate longest-lasting choice with an upfront cost of 12 thousand dollars at the beginning. Also, by being the cheaper option, the JB Billow can give room for operations to change, without compromising financial stability in an adverse market situation.


Based on the criteria and the alternative assessment, it is recommended that Fateline, Inc. pick the Knight option. A Knight machine costs more initially, but its superior characteristics and versatile performance allow it to operate well in good or bad market years. The higher startup costs are, in turn, paid for the potential to reach better efficiency, minimize operating costs and have an extended lifespan, which will bring an overall greater ROI in the future (Lăzăroiu et al., 2020). The Knights’s strategy is coherent with the strategic planning of Fuels Inc. in terms of maintaining competitiveness and assurance of sustainability for the company’s future. Its resilience, together with versatility, is what makes it perfect for use by an industry that thrives on agility and keeps up with the changing forces in the market. Moreover, the higher initial investment may be taken due to the prospects for a higher revenue stream and cost efficiencies in the future.


Recognizing the fact that the suggested mechanisms will help fulfill the sell of the expert lightweight machinery, the decision-making process above supports the recommendation of Fuels Inc to invest Knight equipment. Bob Mackey may make a strategic decision for Fuels Inc. that will lead the company to conquer the marketing area by thoughtfully analyzing the criteria and use a step-by-step process to make the decision.




Davidaviciene, V., Majzoub, K. Al, & Meidute-Kavaliauskiene, I. (2020). Factors affecting decision-making processes in virtual teams in the UAE. Information (Switzerland), 11(10).

Kozioł-Nadolna, K., & Beyer, K. (2021). Determinants of the decision-making process in organizations. Procedia Computer Science, 192.

Lăzăroiu, G., Neguriţă, O., Grecu, I., Grecu, G., & Mitran, P. C. (2020). Consumers’ Decision-Making Process on Social Commerce Platforms: Online Trust, Perceived Risk, and Purchase Intentions. In Frontiers in Psychology (Vol. 11).

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