Description
Solution
2.0 Strategy Relationship with Corporate, Business and Functional Structures
For modern entities, strategy anchor entire decisions which need to be made and integrated to the organisation operations. The rationale of this is what CIPS (2022) identify as inappropriate strategy affecting success of staff in their operations. In line with figure 2 summary, a strategy can be categorised into corporate, business and functional.
Figure 2:Organisations Strategy Pyramid
2.1 Occidental of Oman Organisation Structure
The importance of evaluating an organisation structure is to manage people and departments holistically, flexible and an autonomous people practices (CIPS, 2022a). In figure 3 organisation structure, by use of functional organisation structure, they are able to ensure that their different departments work in collaboration to achieve their intended goals.
Figure 3:Occidental of Oman Organisation Structure
For Oxy organisation, corporate objectives are to ensure right assets are in the hands of remarkable people guided by passion of outperforming. In Oxy (2022), their operations border from profits acquisition to establishing viable, cost-efficient strategy to limit the challenges with energy and protect their environment for their future populations. In this regard, for Oxy flat structure, they clearly stipulate staff roles in their organisation. This is with elimination of many management levels therefore having an improved coordination and engagement. Further, Oxy management capitalise on efficient decision making with entire costs of operation reduced considering Middle-Level Management is eliminated.
Further, the corporate aim of Oxy is to ensure sustainable energy is accessed by their clients. This is while assuring affordable and sustainable operations in their different markets globally. The organisation mission is driving change to achieve an appropriate, green future through quality installing energy technologies both in the companies locations and also individual homes. Therefore, in line with Nwachukwu and Vu (2020) recommendation, strategic aim is important for ensuring their alignment with their mission and vision. Considering Oxy company, the importance of their strategy is establishing a roadmap to inform and guide success in navigating on mission and strategies set.
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- Enhanced Suppliers Performance- With an upward of 50,000 orders annually with 40% valued more than 5 million Omanis and 50% 20 Million Omanis, failure to timely settle invoices, demand for high quality materials and minimising effects would be considered.
- Cost savings- With improved SRM, it is possible for Oxy to negotiate appropriate terms, lower procurement costs (5 Rights not currently achieved) hence working below targets and lead times delivery reduced and achieving economies of scale.
- Increased efficiency- improved and streamlined SRM improve operational efficiency, reducing wastes in administration process for SRM (25% of entire suppliers pay delayed)
- Risk mitigation- this include identification of risks linked with suppliers such as dissatisfaction, financial instability and geopolitical challenges
- Oxy organisation PS&M is supposed to come up with appropriate systems and techniques for improvement of SRM
- Oxy organisation need to make sure they use various automations including AI and robotics for improving collaboration and SRM efficiency.
- Facilitate policies management for improving their operations in onshore and offshore operations with an improved SRM
- Short courses on SRM need to be provided starting with PS&M leadership to achieve 50% increase in awareness of SRM improvements areas.
- Stakeholders relations improved by leveraging on available technologies of communication and interaction.
- Ensure there is 70% increase in budget on SRM improvements