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Case
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Reference no. 301-182-1
Published by: Wits Business School - University of the Witwatersrand
Published in: 2001

Abstract

In November 1998, Rob Angel was facing a second Everest. As CEO of Engen, he had spent close to ten years working on the transformation of the largest South African oil company into a successful, empowered organisation. Petronas, the Malaysian state-owned oil company, had just taken over Engen, and the financial formalities towards the delisting of Engen were under way. However, Petronas was a much more traditional, hierarchical oil company. In addition, Engen was considering a merger with Sasol Oil, the South African state-owned oil company, where the organisational culture was also very different from that which had developed in Engen. Both, Petronas and Sasol, very much adhered to the old command - control leadership culture. The acquisition of 20% of Engen by the South African empowerment company Worldwide was envisaged. Worldwide''s corporate culture was rooted in the African culture. Rob Angel asked himself: ''How will I maintain Engen''s culture of empowerment? Should I protect it by creating as rigid a wall around it as possible? Should I rather embrace integration with Petronas and help foster a blend of the two cultures? Or should we try to transform Petronas to take on our culture?'' The teaching objectives are: (1) identify Rob Angel''s leadership style; (2) analyse the Shared Values process, identify the Shared Values and their effect on the ROI compared to other South African oil companies; (3) determine the organisational changes that had to be implemented to make the rollout of the process possible, as well as ensuring the corporate planning structure and process; (4) understand Engen''s empowerment policies with regard to individual empowerment, black empowerment, black corporate empowerment, community and environmental issues; and (5) mention one example of each, black corporate empowerment, community and environmental projects.
Location:
Industry:
Size:
Large
Other setting(s):
1998

About

Abstract

In November 1998, Rob Angel was facing a second Everest. As CEO of Engen, he had spent close to ten years working on the transformation of the largest South African oil company into a successful, empowered organisation. Petronas, the Malaysian state-owned oil company, had just taken over Engen, and the financial formalities towards the delisting of Engen were under way. However, Petronas was a much more traditional, hierarchical oil company. In addition, Engen was considering a merger with Sasol Oil, the South African state-owned oil company, where the organisational culture was also very different from that which had developed in Engen. Both, Petronas and Sasol, very much adhered to the old command - control leadership culture. The acquisition of 20% of Engen by the South African empowerment company Worldwide was envisaged. Worldwide''s corporate culture was rooted in the African culture. Rob Angel asked himself: ''How will I maintain Engen''s culture of empowerment? Should I protect it by creating as rigid a wall around it as possible? Should I rather embrace integration with Petronas and help foster a blend of the two cultures? Or should we try to transform Petronas to take on our culture?'' The teaching objectives are: (1) identify Rob Angel''s leadership style; (2) analyse the Shared Values process, identify the Shared Values and their effect on the ROI compared to other South African oil companies; (3) determine the organisational changes that had to be implemented to make the rollout of the process possible, as well as ensuring the corporate planning structure and process; (4) understand Engen''s empowerment policies with regard to individual empowerment, black empowerment, black corporate empowerment, community and environmental issues; and (5) mention one example of each, black corporate empowerment, community and environmental projects.

Settings

Location:
Industry:
Size:
Large
Other setting(s):
1998

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