Top Managers at an Oil Company Observe a Gap Between

question 23

Essay

Top managers at an oil company observe a gap between actual performance and desired performance. In addition, stakeholders are pressuring the organization to make changes, such as reducing costs. This organization has not restructured much in the past and has a mechanistic structure. What obstacles to change will it have, and what approach to change should it use?

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Definitions:

Inventory Turnover

A measure of how quickly a company sells and replaces its stock of goods within a given period.

Financial Ratios

Quantitative measures that are used to gauge the financial health of a business by evaluating its performance and financial condition.

External Benchmarking

The process of comparing an organization's performance, processes, or products against those of leading companies in the same or a different industry to identify best practices.

Financial Targets

Specified goals related to the financial performance of an organization, such as revenue, profits, or return on investment.