(Solution) CIPS Organisation Corporate Strategy Influence and Impact for Corporate, Business and Functional Structures

Solution

2.2 Organisation Corporate Strategy Influence and Impact for Corporate, Business and Functional Structures

Corporate Structure

A corporate structure is comprised of different departments/business units influencing their operations According to Wang et al. (2020), for Oxy corporate structure, it include directorship, commercial teams, supply chain networks and logistic. Hence, their strategy mist be aligned to supply chain and corporate structure. Their corporate strategy of developing sustainable energy, Oxy organisation make sure their practices in corporate structure is mirroring their strategy. Also, an active collaboration of different stakeholders is assured. This directly influence the need to ensure successful supply chain network with structure appropriately aligned.

Business Structure

For Oxy organisation, business structure impact on their capacity of leveraging on competitive advantage and dominating Oman energy sector. From the CIPS notes provided, to note the extent in which corporate objectives influence Oxy business structure, business evaluation and external environment is important. This is identified by CIPS (2021a) as corporate strategy influencing business structure in Oxy as illustrated in figure 4 Blue Ocean/Red Ocean approach;

Figure 4:Red and Blue Ocean Strategy

In figure 4 summary, Oxy organisation use blue ocean strategy since it facilitates the corporate strategy to include development of uncontested business environment. According to Nelson and Bohanon (2019), this is at the same time being able to create and capture new demands and break value-costs trade-offs. The strength of this include organisations failing in exploiting prevalent demands and competition in their market.

Functional

For Oxy, functional structure include marketing, HR teams, Production and R&D teams. Their corporate strategy for Oxy influence the departments practices in improving their practices successfully in the departments. As evidenced in Liang and Renneboog (2020), in this form of a plan, corporate objectives impact products provision to their appropriate audience with good marketing strategies used for ensuring products and services are acceptable. The decision making process to pursue corporate strategies is operational and not unique.

2.3 Strengths and Weaknesses of Current Structure

For purpose of evaluating strengths and weaknesses of their structure, SWOT analysis is relevant. According to CIPS (2021b), this is applied to evaluate strengths, weaknesses, opportunities and threats. For Oxy organisation structure, strengths and weaknesses influence internal organisation with their opportunities and threats externally.  In Oxy flat organisation structure, the SWOT analysis is summarised in table 1;

Table 1:SWOT Analysis for Oxy Organisation Structure

Considering table 1 summary, by the organisation flat structure, immense opportunities are evident for effective decisions made. This is supported by Erić-Nielsen et al. (2019) identifying Flat structure as lacking middle-level management. The situation is evident in Oxy organisation where their structure is a cost savings area for the organisation. Their communication structure is appropriate in their entire changes. For example, my placement in the organisation include ensuring flow of information across the entire hierarchical structure with zero distortion of the information being shared. Also, in regard to Oxy organisation, collaboration of all employees has a positive increase in motivation and satisfaction level. For a long-term strategy, Oxy staff collaboration harnessing motivation and satisfaction scope. In a long-term basis, Obeng et al. (2021) argue on the need for improving morale and productivity with turnover reduced. On the other hand, considering Oxy is undergoing rapid growth and currently in more than 100 countries, their structure is substantially being ineffective. The rationale of this is what Mazorodze and Buckley (2019) identify the strategy as being best when applied in small organisations. Further, retention rates for senior management and directors in Oxy has lowered considering the likelihood of staff to increase in management levels.

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