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Commercial Organization and Community Ownership: Case Study of Big Oil Corporation

Overview of the Problem

The purpose of this assessment is to require students to:

•Analyse the types of issue that can typically arise when commercial organisations wish toexploit resources held in community ownership
•Identify a specific organizational problem that is likely to emerge from this type of situation
•Identify and analyse a range of potential solutions to the problem so identified
•Provide a justified recommendation for the course of action organisations should take in orderto secure maximum stakeholder satisfaction with the subsequent outcomes
•Identify and assess corporate social responsibility issues and resolving such issues

Task/Assignment

You are to assume you are the Chief Operating Officer of Big Oil Corporation, a major oil and gas exploration company, with its headquarters in Houston Texas. You have obtained a licence from the New Zealand government to conduct some exploratory testing for potential oil and gas reserves in a remote area of the South Island of New Zealand, in order to evaluate whether oil reserves may exist in quantities that would justify the cost of exploration and extraction. You are initially aware of two significant challenges that need to be overcome if you are to be able to successfully carry out your exploration:

•The majority of land in the area under investigation is owned by local iwi, whose co-operationwill be required if further exploration is to take place.

•One relatively small part of the relevant land area is designated as a National Park, under themanagement of the New Zealand government’s Department of Conservation.

You are to first read through the attached case studies on stakeholder relationship management (Loi, 2016) and use that material to help you prepare a report to the board of directors of Big Oil, assessing the character of the exploration opportunity that exists in New Zealand, discussing a range of strategies by which you might take advantage of that opportunity, and recommending a preferred course of action that will result in maximum levels of satisfaction for all relevant stakeholders.

Assignment Requirments

Your submission should be between 3,000 and 4,000 words in length, and follow the structure identified in the “Report Structure” section of this briefing sheet. You should first develop a provisional and fairly detailed level of response, within the constraints implied by word count requirements, to each of the following questions. Note though that these answers are provisional and for your own use only, and should be edited and synthesised into the format required by the “Report Structure” section of this briefing sheet.

Q1: What is the most accurate overview description of the problem that your management report will seek to resolve?

Q2: What specific organisational goals should Big Oil set for its New Zealand operation in order to assist in the determination of alternative responses to that problem?

Q3: Which stakeholder groups have a legitimate interest in the company’s ambitions? What will be the likely tone of each stakeholder’s response to those ambitions?

Q4: What options does Big Oil have in terms of establishing, structuring, and staffing a New Zealand business operation?

Q5: What options does Big Oil have in terms of developing the performance of individuals and teams that work within its New Zealand business operation?

Q6: What options does Big Oil have in terms of managing its communication with the relevant New Zealand stakeholders?

Q7: What are the most likely sources of conflict that Big Oil New Zealand might expect to experience, and what options does it have in terms of managing that conflict?

Q8: What are the most important Corporate Social Responsibilities that Big Oil New Zealand might looked at into?

Q9: What options does Big Oil have in terms of measuring the extent to which it is achieving the organizational goals established at Q2?

Q10: How can the answers to questions 1-8 be incorporated into a recommended course of action through which Big Oil can manage its entry into the New Zealand market?

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