PetroSahand International Group: investigating the reasons for strategy implementation failure – focusing on organization capitals such as alignment, leadership, and organizational culture

Abstract

Learning outcomes

After completing the case, students will be able to understand the reasons for the lack of successful strategy implementation in companies, especially engineering, procurement and construction (EPC) and general contractors in Iran’s oil, gas and petrochemical industry; understand the importance of alignment as an organization capital in successful strategy implementation and familiarize themselves with assessing the alignment readiness of companies; understand the importance of leadership as an organization capital in successful strategy implementation, comprehend one of the most essential theories of leadership in the world of management and familiarize themselves with assessing leadership readiness using this theory; and understand the importance of leadership as an organization capital in successful strategy implementation, comprehend one of the most essential models of organizational culture in the world of management and understand how to assess the readiness of organizational culture in companies.

Case overview / synopsis

This case discusses the reasons for strategy implementation failure at PetroSahand International Group, one of the most prominent EPC and general contractors in the oil, gas and petrochemical industry in Iran. This case also examines organization capitals such as alignment, leadership and organizational culture, the three most important factors for the successful implementation of strategies, at this company. PetroSahand is an international, project-oriented company that has been able to successfully complete more than 100 large domestic and international projects during its four decades of activity. However, the company is currently facing many difficulties such as overdue debts and projects.

Complexity academic level

The target audience of this case are graduates and undergraduates in the courses of Strategic Planning, Strategic Management, Strategy Implementation, Strategy in Action and Change Management. Additionally, this case study can be useful for senior managers of companies and can help in the successful implementation of strategies as well as improving their company’s alignment, leadership and organizational culture.

Supplementary materials

Teaching Notes are available for educators only.

Subject code

CSS 11: Strategy.

Citation

Dehghan Salmasi, S., Nasr, A.K. and Dadashzadeh, Y. (2022), "PetroSahand International Group: investigating the reasons for strategy implementation failure – focusing on organization capitals such as alignment, leadership, and organizational culture", , Vol. 12 No. 3. https://doi.org/10.1108/EEMCS-04-2022-0134