Table of Contents
EXECUTIVE SUMMARY 2
1. PROBLEM CAUSE IDENTIFICATION 3
1.1 STRUCTURAL STRATEGY 4
1.1.1 Strategic Management and Direction 4
1.1.2 Organisation Structure 5
1.1.3 Absence of Programme Management 5
1.2 BEHAVIOURAL STRATEGY 6
1.2.1 Absence of Total Quality Management 6
1.2.2 Poor Communication 6
1.2.3 Poor leadership 7
1.2.4 Unethical Behaviour 7
1.3 OPERATIONS STRATEGY 8
1.3.1 Poor HR functioning 8
1.3.2 Lack of Policies and Procedures 8
1.3.3 Absence of Risk Management 8
2 SOLUTION RECOMMENDATION 9
2.1 STRATEGIC MANAGEMENT 9
2.1.1 Using the Balanced Score Card (BSC) 9
2.2 INTRODUCING THE CHIEF PROGRAMME OFFICE 11
2.3 PORTFOLIO OF STRATEGIC TRANSFORMATION 12
2.4 BECOME A LEARNING ORGANISATION. 13
2.5
…show more content…
1. Problem Cause Identification
In this section, the problems and causes identified in the “Royal Dutch/Shell” case study will be presented. The following table summarises the problems and their root cause types. A detailed breakdown of these causes and their respective solutions will be discussed in the subsequent sections, as highlighted in the table.
Problem Identified Cause type Discussed in topic
Lack of strategic management and direction Behavioral 1.1.1
No programme management Structural 1.1.3
Organogram, poor reporting structures Structural 1.1.2
Poor Leadership Behavioral 1.2.5
Lack of trust Behavioral 1.2.1
Lack of Communication Behavioral 1.2.2
Absence of Risk Management Operational 1.3.3
Unethical practice Behavioral 1.2.6
No shift to Learning Organisation Structural 1.1.2
No indication of Authority, Accountability & Responsibility Structural 1.1.1
Lack of Team Cohesion Behavioral 1.2.1
Lack of commitment Behavioral 1.2.2
Absence of TQM philosophy Behavioral 1.2.1
Poor HR functioning in company Operational 1.3.1
No performance management Operational 1.3.1
Resistance to Change Behavioral 1.2.5
Lack of Operation Policies and Procedures Structural 1.3.2
Table 1. Summary of Problems and Cause variables 1.1 Structural Strategy
1.1.1 Strategic Management and Direction
The Royal Dutch/Shell Company maintains a structure of decentralized management and decision making. This led to
A structure depends on the organization 's objectives and strategy. In a very centralized structure, the highest layer of management has most of the choice creating power and has tight management over departments and divisions. In a much suburbanized structure, the choice creating power is distributed and also the departments and divisions could have totally different degrees of independence. Wal-mart’s structure is built upon its risk management, safety and claims management process. Google Inc. has gained much attention and acclaim for its unusual organizational culture, which is designed to establish loyalty and creativity. Although both Google and Wal-mart focuses on risk management and they specialized on two different factors. Google focus more on creativity, loyalty and keeping its employees happy. Wal-mart tends to help customers by saving money, claims and promoting within the company.
Q.1 – Briefly describe the dilemma presented in this case study. Who are the key players and what are some of the antecedents that have led to the present problem? Ans. When the best manager, takes certain actions which go against the core values of the company, it becomes really difficult for the management to make a fair judgement. They are stuck in a dilemma of what would be a better judgement. As a leader, it is very important to be fair and impartial to your team members. And so is the dilemma presented in the case, Bob’s Meltdown, Nicholas G. Carr. The key players in this case are1. Annette Innella 2. Robert Dunn 3. Jay Nguyen Annette Innella is the Vice President, Knowledge Management at Concord Machines. She was recently hired by
1. To provide an introduction to the conceptual framework of strategic management using a non-business situation.
New England Seafood Company executives face a potential two-stage plan to move into the freshwater catfish market because of the banned oyster harvesting along much of the Atlantic and Gulf Coasts, and increased competition from foreign producers. These factors have resulted in significantly lower yields for New England Seafood. In order to stay in business, New England Seafood Company needs to look at harvesting and processing something other than seafood. New England Seafood Company looks to
Organizational Hierarchy Structure- Toys R Us was a decentralized organization, which had a leadership type setting from country to country. This type of structure was difficult because all the leaders from different countries were not communicating effectively. The company knew they had to make some changes to the system, if they wanted to be successful. Therefore, after careful consideration, the company decided to move to a more centralized structure. This change was needed to strengthen their business with regards to their compatibility amongst countries and creating a more efficient workplace in the United States and abroad. In the company’s business in Europe, instead of their being different leaders across the continent, there will
Following an analysis of the case, the company is currently experiencing internal communication problems and a lack of understanding of how a business that has a matrix structure should operate. By applying a few changes within the organisation will result in the company becoming even more successful.
This structure is unlike that of the Philips where locals, within the national organizations, held senior management positions. Basically, the structure gave some leeway to product control but still kept the same global image of Matsushita. As times/cultures changed, the strategy that existed with Matsushita during the early years proved to be the foundation of a successful company.
Each division is operating independently with its own division manager. Also, each division’s performance had been judged on its profit and return on investment (ROI). The company policy of decentralizing responsibility and authority for all
o Revenues minus expenses determined the cash flows for years 1984-1991. The cash flows cease in 1991 after all oil and gas reserves are liquidated. The cash flows derived account for the liquidation of the oil and gas assets only, and do not account for liquidating other assets such as current assets or net properties. The cash flows were then discounted by net present value using Gulf 's cost of capital as the discount rate. Total cash flows until
In 1870 John D. Rockefeller started Standard Oil Co. and it quickly became the largest petroleum products company in the world. By 1890 Standard controlled 90 percent of refined oil in the United States and was sued by the state of Ohio for its anticompetitive practices. Standard Oil of Ohio which was its original name simply broke the company into 41 separate companies, and controlled them through the new Standard Oil Trust, legally known as Standard Oil Co. of New Jersey. Because there were no federal laws prohibiting anticompetitive behavior in business Standard Oil was able to avoid any serious repercussions from the government. Standard Oil achieved market dominance by undercutting the competition, arranging special deals with railroads, and aggressively buying out its competition. Between 1902 and 1904 the writer Ida Tarbell, the daughter of a failed oil businessman whose company went under because of Standard Oils practices, wrote a 19-part investigational report into the practices of Standard Oil. These articles led to the wide spread public outcry for the government to do something about Standard Oil and monopolies in all other industries. In 1911 Standard Oil was sued by the United States and the case reached the Supreme Court. Under the Sherman Act the government alleged Standard Oil was a monopoly and abused its monopolistic power to restrain trade through predatory pricing and unfair deals with railroad companies.
1. SteamScot face a ‘basic economic problem’ what is this ‘problem’ and what is the opportunity cost of the replace and repair programme?
The decentralized structure and the size, geographical distances, and cultural differences member companies have in this enterprise could make it hard to lead and to maintain a cohesive, unified company attitude. Top management does not have wide control over the operations. Also, there is a risk that people working separately might forget the common purpose. In a recent interview William Weldon, the CEO of Johnson & Johnson answered these problems with highlighting that they have “wonderful leaders” and people in whom they have “a lot of confidence and faith in and they run the businesses”. He also mentioned the most important document of Johnson & Johnson, the credo. The credo and its value system assure a strong corporate culture that holds the Family of Companies together and eliminates the risks of
After reading the case of the “Paradoxical Twins Acme and Omega Electronics”, I found Both Acme and Omega produce similar products and offer similar services. Acme president John Tyler is a very tough going individual and he is portrayed to be an autocratic individual because there is one way communication in Acme. The case provides an opportunity to evaluate both Acme and Omega’s organization structure of a business. Both companies used to have the same organizational structure but after they were sold to different investors, as a consequence of this, each company has its own procedures and company
One of the critical problems confronting management and the board of Pioneer Petroleum Corporation was the determination of a minimum acceptable rate of return on new capital investments, The company’s basic capital budgeting approach was to accept all proposed investments with a positive net present value when discounted at the appropriate cost of capital. At issue was how the appropriate discount rate would be determined.
For starters there are no well-drawn management plans within the firm. A leading example is the fact that Chinh and Anh have no well spelt out roles within the firm. It is apparent by the fact that the two have in fact just assumed roles in accordance to what over time become their roles and interests within the organisation. This leads to lapsing of duties and lack of clear guidelines as to the course of action in case of any eventuality as is the case here. Any developments within the business have become unmonitored and where there is failure, there is no one mandated to take up responsibility to detect and act accordingly.