Petroleum and Shell
Shell Company Analysis Dr. Scruton Methodist University Management and Organization Abstract Shell Oil is a global company in the oil industry. This long established company has withstood the test of time in this competitive market. Management practices have established the resources necessary to overcome the obstacles of a global company. This detailed analysis of Shell Oil focuses on management in order to provide an understanding of how the company is able to succeed. The organizational analysis provides insight into Shell’s goals, culture, and resources.
An example of a specific roblem that Shell faced, oil spills in Nigeria, continues off of the company analysis. Nigeria is a major extraction location for shell, but sabotage and oil leaks grew to be a major concern. Shell faced court cases in search of relief in Nigeria, but the majority of the oil leaks were a result of sabotage; therefore, shell was not responsible. However, people believed that it was shell’s responsibility to safeguard the oil lines and prevent sabotage in the first place.
Shell funded the cleanup of previous oil spill sites along with a major advertising campaign to avoid a negative impact on its usiness. Some people still believe that Shell should be taking more responsibility for the oil spill crisis in Nigeria. Oil is a resource that has been in great demand since the production of combustion engines, as well as other industrial machines. Royal Dutch Shell, commonly referred to as Shell, has been a dominant force in the oil industry for over 100 years. Shell management has enabled success and allowed the company to overcome any obstacles.
An in-depth analysis of Royal Dutch Shell’s management techniques provides information on how it can conquer the challenges of change. A ecent challenge that Shell faced in Nigeria indicates that Shell has the necessary resources to prevail. Shell continues to be a driving force in the oil industry from the business aspect, but Just now prosperous is this global company. A man named Marcus Samuel founded an antique business in London. Seashells were among the products that he sold, which is how Shell acquired its name. Marcus grew fond of the oil exportation business during a trip to Japan.
Before the invention of the combustion engine, oil was merely used for lighting and lubricating small components. Marcus and his brother Sam transformed the oil transportation ndustry with their company, Shell Transport. Expanding the business lead to a merger with Royal Dutch Petroleum in 1907. Royal Dutch Shell rapidly expanded production throughout the world, included places like Russia, Romania, Venezuela, Mexico and the United States. Today, Royal Dutch Shell operates in more than 70 countries. Shell is able to produce 3. 3 million barrels of oil in a single day generating $467. billion dollars revenue annually. Organizational Overview: Shell Corporation has a website that addresses all the publicly known information about the organizational operations in the United States and throughout the global conomy. The Shell website does not specify a specific mission statement. According to Mission Statement (2013), “The mission statement should be a clear and succinct representation of the enterprise’s purpose for existence. ” While Shell. com does not specifically list anything labeled as a mission statement, it does identify a purpose to the organization.
The corporate website under Our Purpose (n. d. ) states: The objectives of the Shell group are to engage efficiently, responsibly and profitably in oil, oil products, gas, chemicals and other selected businesses and to participate in he search for and development of other sources of energy to meet evolving customer needs and the world’s growing demand for energy. The planning methodologies utilized by Royal Dutch Shell include: a vision, the mission, the strategy, the goals/tactics, and metrics (“Strategic Planning,” 2009). The vision leads to the mission.
The mission in turn enables the creation of the strategy. Strategy gives a guideline for the goals/tactics and metrics. The vision is to provide for the future energy needs of the people while preserving the environmental health of the planet (Shell. com). The mission, or purpose, is identified and explained in the above paragraph. Shell states that their strategy is innovative and competitive. As recently as 13 January 2013, Shell released its strategy as innovative and competitive to the news and media. Shell CEO directly states, “Shell is competitive and innovative.
We are delivering a strategy that others can’t easily repeat, with unique skills in technology and integration and a worldwide set of opportunities for new investment” (“Shell Delivering,” 2013). Robbins and Couter (2012) define competitive strategy as, “an organizational strategy for how an organization will compete in its usiness (es)” (p. 231) and innovative strategy, “aren’t necessarily focused on Just radical, breakthrough products. They can include applying existing technology to new uses” (p. 238). Shell is not new to using both these strategies to survive the challenges with the very competitive oil market.
Arie de Geus (1988) was head of planning for the Royal Dutch/Shell Group companies and employed with corporation for 30 plus years; identifies that out of survival for the Shell Transport and Trading Company in 1907 to compete with the Rockefeller’s Standard Oil it had to Join with Royal Dutch Petroleum. This innovative idea of Joining the two companies allowed the company the ability to continue to compete competitively and still going strong more than 1 00 years later. The customers ot Snell are those people that purchase or use the products produced or shop the store locations around the world.
Shareholders are those that have investments or hold shares in the corporation and either profit or lose from the businesses operations. The competitors to Shell are other major oil companies; this includes companies such as BP, ExxonMobil, Chevron, and many more throughout the globe competing for the oil market. Stakeholders are a much broader range of people or groups. All activities of the corporation that influence or affect those in or around it can be considered a stakeholder. The employees, shareholders, and competitors are all affected by the happenings and success of the company.