大锦囊001think.com（品牌营销第一资料库）海量精品策划资料!QQ:1242116556Firm:TowersPerrinCaseNumber:2Topic:OrganizationEffectivenessSetupYourclientistheupstreambusinessofoneofthemajorintegratedoilcompanies.Theupstreambusiness,alsocalledexplorationandproduction,isthepartofthecompanythatexploresforandpumpsoiloutoftheground.Managementhascalledyouinbecausethecompany’sprofitabilityhasdeclinedrelativetoitspeergroup(othermajoroilcompanies),andtheywouldliketofindwaystoimproveperformance.Sinceoilisacommodity,theprimarywaytoimpactprofitabilityisthroughcostreductions,eitherbyreducingoperatingcosts(costperbarrelproduced)orbyreducing“findinganddeveloping”costs(investmentsperbarrelofoildiscovered).Akeypointthatishelpfultoevaluatingthiscaseistounderstandthatperformanceimprovementcanbeachievedthroughefficiencygains(i.e.,doingthesameworkatalowercost)oreffectivenessgains(i.e.,achievingbetterresultsforthesamecost).Intheoilindustry,thistranslatesintoeitherloweractualoperatingcostsorhighervolumesoverwhichtospreadcosts.QuestionYourclienthasaskedyoutoevaluatetheviabilityoftwodifferentoptions:1.Reorganizethecompanyalonggeographiclines(i.e.,focusonregionalbusinesses),reducingheadquartersoverheadchargesbyshiftingadministrativeresponsibilitytoregionalbusinessesandeliminatingalayerofadministration2.Formjointventures(i.e.,subsidiariesjointlyownedbyyourclientandapartner)withcompetitorsineachregiontorealizecooperativeopportunitiesandresultingsavingsDiscussthemeritsofeachalternative.Thefollowinginformationisgermanetothediscussion:Therearesignificantregionaldifferencesinhowthebusinessworks(e.g.,operationsintheGulfofMexicoareverydifferentfromoperationsintheRockies)Allowingregionalcontrolcanimproveperformanceforsomebusinessprocesses.Forexample,developinglocalexpertiseandfocuscanresultinoperationalefficiencygains(reducedcosttoproduceoil),aswellaseffectivenessgains(enhancedresultsfromexploratoryactivities).Somebusinessprocessesgainconsiderablebenefitfromcentralizationorcentralcoordination(e.g...
