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Apa style management business case analysis-organisational governance(rev1)

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Academic - Writing Assignment (APA Format)

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Apa style management business case analysis-organisational governance(rev1)

  1. 1. Running head: [Business Case Analysis -Organizational and Governance Structures] 1 [Name :] [Author :] [Institution :] Author Note: [Business Case Analysis-Organization and Governance Structure.
  2. 2. Abstract While we the millennials are quite tied up with setting new trends and buzz words in the current day business scenario, it is also imperative to make a thoughtful consideration of a BUSINESS CASE ANALYSIS of two corporate entities. The two companies or corporates that I am trying to do an in-depth case analysis is Oil Search and Sandvik. The Oil and Gas Exploration firm to me, is a trendsetter in corporate governance and it is a company listed on the Australian Stock Exchange and head quartered in Papua New Guinea with Corporate Offices in Sydney and the EMEA Region. Sandvik however is a Sweedish Multinational conglomerate again with a great degree of similarity in lieu of its innate ability and capability to function as a Corporate with due emphasis being given to a chartered structure for corporate governance.
  3. 3. Case Company Synopsis. These days the contemporary world and the emerging scenario in a business and organizational context points to a global dependence on international trade partners gaining monopoly with an additional focus on multilateralism in the economic and socio-political, cultural and technological front. Although companies and corporates might be inadvertently looking inwards for business continuity, production and profitability solutions, we cannot undermine the significance of the sociopolitical make-up due to an imminent threat like persistent trade wars and trade sanctions that could jeopardize the sustainability of Corporates in a real-world scenario and business context. Apparently natural calamities one after another, global warming on the one side and cloud seeding technologies on the other side and disruptors like block chain technology, fintech unicorns and AI gaining impetus, the digital transitioning of the creative economy with more reliance on the digital infrastructure cannot be undermined. Data, is becoming the New Age, Oil and the onus on renewable resources of energy to fend for the essentials of basic living is quite a reality. The virtual world may have seemed impersonal and improbable but in reality, it is no longer just a figment of our imagination. This is all the more reason to dissect and do a critical business case analysis of the similarities or apparent differences in the corporate and organizational structures of corporate entities .This is in order to gauge their levels of complexity and / or simplicity in producing results that has enabled them to achieve sustainable goals at par with excellence.
  4. 4. A) Business and Organizational or Corporate Governance Structures: While it is evident that corporate governance and organizational structures are not limited to an organizational chart of hierarchy but it is a rather very broad term that encompasses a wide range or spectrum of areas that vary from rules, regulations, relationships, policies, procedures, systems and processes. Obviously the nature and governance characteristics of a corporate envisaged by a Vision and Mission Statement , Shared Values and a variety of other factors like internal and external factors that include organizational objectives , constitution , compliance , policies and processes and external factors like laws, regulations, sociopolitical norms and corporate social responsibility measures undertaken to reach out and meet community expectations as a way of giving back for all the tangible and intangible resources utilized. Both Oil Search and Sandvik are companies with a credit rating that is unparalleled and they have successfully achieved unprecedented strides in their respective areas of expertise being oil and gas exploration and mining and global engineering, rock excavation and metal cutting and materials technology including the creation of artificial limbs. These are corporates who have always succeeded in rising up to the challenge in streamlining operations with a proper framework of corporate and organizational structures in place and having the ability to hold an extensive appraisal and exploration portfolios. i) SANDVIK ii) OIL SEARCH SANDVIK: Corporate Governance and organizational structures in Sandvik being a global conglomerate with a diverse range of portfolios comprises of systems, principles, polices, structures processes and procedures which are time tested and with an onus on the companies shared values such as business sustainability. Apparently Sandvik has an effective governance framework with
  5. 5. dependent and independent variables in congruence to make the whole system and structure really effectual. While the corporate governance structure can be captured as in a nutshell, the corporate governance structure within Oil Search can be termed and described as Board Governance. Sandvik Model: i) Nomination Committee ii) Audit Committee iii) Internal Audit iv) Speak Up and Business Ethics (For better transparency) a) Shareholders Meeting b) Board of Directors c) President & Group Executive Management d) Business Areas e) Divisions  External Auditor  Remuneration Committee  Group Functions. OIL SEARCH In Board Governance there is a Board Charter that needs to be adhered to as the Board is accountable to the shareholders or stake holder for the performance of business. The Board of Directors are obliged to oversee, direct and enact business strategies by providing in-depth insight and oversight of how policies and strategies are being executed by the management team down to the grass-root level. Apparently, protocols envisaged also allows for exceptions and empowerments with provisions for inclusion amidst diversity by giving rights of discretion where employees can intervene at a Board Meeting if higher ups need to be informed about unprecedented events like natural
  6. 6. calamities or any threat to the health and well-being of any of the organization’s resources or assets. The Board Meetings are normally conducted by a Board Committee which are made of smaller groups of Directors and independent committee members to deal with complex issues or specified areas. The Board delegates the operations and the nitty-gritty affairs of the day to day functioning of the business to the Managing Director. The Board Charter outlines the roles, responsibilities, functions and powers of the Board that includes strategic leadership, risk management, performance management and establishing values and organizational goals and objectives. With respect to making a fair and meaningful contribution to the Company’s affairs the organization is treated as a fictitious asset and the Board members are subjected to Board performance evaluations. This evaluation determines the effectiveness of the Board and requires the Board to complete questionnaires covering their own performance to ensure transparency and accountability. B) Environmental factors that influence the Companies or Organizations performance and decision-making process: OILSEARCH / SANDVIK (Comparative Study and Descriptive Analysis) a) While doing an analysis of the impact of the environmental factors there are many internal and external analysis methods, techniques and research models that have been developed through research and analysis. We can delve deeper into the structure and framework of the business architecture of organizations by following the 7 S’s Model and it is known as the McKinsey 7-S Framework. The Soft S’s are related to the human domain or also called the human capital as it involves capability building of human resources that rely on innovative, state of the art HR Practices through training and development of the required skill sets to gain the required level of expertise. With respect to the style of leadership, staff, skills and shared values the organizational framework envisages a social responsibility strategy , stakeholder engagement, integrity and
  7. 7. transparency, responsible operators with health, safety and environment being a key area of business operations and shared values such as sustainable development with access to power supporting benefits distribution , livelihood and local enterprise development , leadership and education , building community resilience and women’s protection and empowerment. b) The Hard S’s as it is denoted plays a lead role in SANDVIK Versus the Soft S’s in OILSEARCH as it was being outlined. The Hard S’s denote Strategy, Structure and Systems – Heradeous (1998) points out that Strategy is both analytical and creative and as Design Thinking indicates, creativity can be useful in the consideration of structure and system in organization. The Culture and Enabling Structure is apparently the building blocks and framework that sets the foundation for organizational and corporate governance. The operational controls and risk management frameworks are underpinned by the shared values such as: a Customer Focus b Innovation c Fair play d Passion to Win The Systems however give more of an onus on the detailed controls and risk framework which is a common factor across the GROUP and it is detailed in the Operational Systems. The Operational Systems however envisages strategic planning, monitoring, compliance and internal controls. As a part and parcel of indigenous methodologies to monitor performance there are performance tracking measures as against KPI’s (Key Performance Indicators) , Performance Reviews, Speak Up Sessions and Investigations to guarantee Fair Play and higher degrees of transparency and accountability and there is no such thing as whistleblowing or any kind of corporate politics to bully the person who speaks up. Analysis, Audit and Continuous Improvement processes and methodologies are also given due importance in order to measure the performance and decision-making process within organizations. C) Top 3 Risk Factors that influence decision-making : 1)Negligence: Both Organizations are obliged to operate in a highly responsive and responsible manner as operations within each of their high-risk portfolios involves huge penalties due to acts
  8. 8. of negligence of any sort. The higher the risk the greater the responsibility to adhere to strict precautionary measures and compliance of the safety management systems. 2)Conflict of Interest: It becomes extremely important to follow the best industry practices and exercise due diligence in working towards the best interests of the organizations. A Speak Up reporting system to report concerns or other mechanisms to bypass organizational hierarchy and protocols is instigated to increase the level of accountability and transparency while making organizational business decisions. 3)Nepotism: Being able to display any kind of favoritism or nepotism will prove to be costly as it is against the organizational values of fair play and good business ethics. In Conclusion it is imperative to focus on the shared values and organizational objectives in order to have an effective organizational structure. Upon reflection it is evident that organizational goals and objectives have been deployed on the basis of a strong framework and good corporate and organizational governance demands due diligence and fair play. However, with everchanging business demands and transitioning infrastructure and economy it is imperative to do an on-going assessment to develop strategies for hedging, contingency planning and crisis planning in order to mitigate the impact of disastrous consequences. Last but not the least creative and disruptive innovations always have the last word in order to incorporate continuous development and improvisations and one such suggestion could be a more improved technological knowhow to curb malpractices and better tools and techniques to sustain a better ecosystem by digitizing governance processes. This is also aimed at achieving a fully integrated foolproof and infallible governance ecosystem to mitigate potential risk in high risk operating environments and plan for strategic growth in order to be able to govern at the highest levels. The End.
  9. 9. References Derouiche,I., Hassan,M., & Amdouni,S. (2018),Ownership Structure and Investment -Cash Flow Sensitivity. Journal of Management & Governance, 22 (1), 31 – 54. DOI: 10.1007/S 10997-017- 9380- X.