Apa style management business case analysis-organisational governance(rev1)
Running head: [Business Case Analysis -Organizational and Governance Structures] 1
[Business Case Analysis-Organization and Governance Structure.
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.
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
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.
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.
ii) OIL SEARCH
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
dependent and independent variables in congruence to make the whole system and structure
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.
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
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
calamities or any threat to the health and well-being of any of the organization’s resources or
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
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
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
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
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
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
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
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