SHELL CASE STUDY

The Royal Dutch Shell which is also named as the shell in an Anglo Dutch multinational oil as well as gas company has its headquarters in Netherlands and is incorporated in United Kingdom. The Shell is among the seven supermajors. With respect to revenue, it is considered as the seventh biggest company in the world and it is the second largest oil company. The revenue of the Royal Dutch shell was equal to 84% of the $555 billion GDP at the time.  We have been offering top-notch online case study help since a decade.

The shell proposed the execution of the largest investment of the industry which was ever made in Africa. The proposal of the company responded to three major problems. But there were some problems with the proposal as well. One of the biggest issues was that the two critical entities which were proposed by shell for sharing the investment, gave the clarity that it will take sometime before they would take the proposal of Shell into consideration.

Another biggest issue consisted of the political as well as social instability in the areas where the shell operated. The company acquired a very negative image in the public and it was mainly because of the reasons that shell has been claimed for waging an ecological war against the natives as well as the natural habitats. In addition to this, Shell was accused for being responsible for the native’sdeath from the land in which the companyprocured oil. We understand your situation. Let our  assignment write experts the entire paper for you. 

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SWOT analysis of the Shell

Strengths:

• Complete presence in every aspect of oil and gas- The company has a comprehensive portfolio which covers every aspect of the sector of oil as well as gas consisting of the integrated gasoline, upstream as well as downstream segments. The company has also invested in the liquefaction of gas, conversion of the natural gas to liquid as well as producing and marketing of the fuels, natural gas, oil as well as petrochemical products and the manufacturing of the synthetic crude oil.
• Business strategy- Shell is one of the primary players of the domain of oil and gas. The main strategy of the company is the improvement of the strategic position of the company by looking at the leadership of the market in oil, low carbon energy as well as natural gas by focusing on the prospects 0f the future as well as sustainability
• Potential to change- the company started with the sale of shells and then the company moved into the trading in machinery, rice as well as silk. The first move in the oil and gas started with kerosene after that they moved to oil, petrochemical and natural gas. When the history of the company is looked at, the ability to change and adapt has been one of the biggest strength of the company.
• Main values- the main values of the company include integrity, honesty as well as respect for the people. Every strategy of the company, the code of conduct, the norms of working as well as the guidelines across the firm are in total compliance with the core values which is one of the main factors of success for the Shell.

 

Weaknesses

• Sustainability challenges- Just like most of the major competitors Shell is also trying to establish sustainable solutions for the satisfaction of the energy demands of the customers. Oil and gas companies like Shell look at the solutions of technology that look at recovering more than 30% of the resource of energy for sustaining in the future. The options are very costly and it consumes the business revenues.  
• Slashing of the resources- The Company has been subject to slashing its oil reserves twice at a stretch. The initial one was when the Nigeria reserves were lost when it slashed its reserves by 3.9bn barrels that constituted around one-fifth of the total holdings.

 

Opportunities

• Alternative energy- Shell has a number of plans for the alternative energy options as well as the company will take all the compulsory steps to move into alternative options of energy that will be future. The company also had invested in the future sustainable transport system, smart cities and green fuels.

 

Threats

• The main competitors of are Petronas, Chevron as well as British. The competitors have developed some new technologies which can be a serious threat to the industry in the medium to long term future.
• Shortage of skilled workers in some international market is a threat to the growth of the profits of the company.
• Over the years, the Shell has established various products but those are generally response to the establishment by the other players. Thus the company has no regular supply of innovative products.

Strengths	Weaknesses
Complete presence in every aspect of oil and gas Business strategy Potential to change Main values	Sustainability challenges Slashing of the resources

Opportunities	Threats
Alternative energy	Competition Lack of innovative products Shortage of skilled workforce

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Shell PESTEL Analysis

Political factors- the political factors play an important role in the determination of the factors which impacted long time profitability of the Shell in some market or nation. The shell is operating in major integrated oil as well as gas in more than a dozen nations and exposes itself to various kind of political system of risk and political environment. our experts are here to provide you with the necessary case study assignment help. Following factors can be analysed by the Shell before they enter or invest in a particular market:

• Trade regulations as well as tariffs related to basic materials
• Risk of military invasion
• Rate of tax and incentives
• Mandatory benefits of the employees
• Minimum wage and overtime
• Work week regulations in integrated oil and gas
• Regulations of pricing
• Favoured partners of training

Economic factors-

the factor of macro economics like the rate of inflation, rate of interest, foreign exchange rate and the economic cycle determines the aggregate investment and demand in an economy. While the macro economic factors like the norms of competition impacts the competitive advantage of the company. The Shell can utilise the economic factor of the nation like growth rate, inflation as well as the economic indicators of the industry like the major integrated oil as well as gas industry growth rate, spending of the customers for forecasting the growth trajectory of not only the sector but also the organisation. The economic factors that should be considered by the Shell are as follows:

• Intervention of the government in free market and related basic materials.
• Rate of exchange and stability of the currency of host country
• Quality of infrastructure in major integrated oil and gas industry
• Stage of business cycle
• Economic growth rate
• Cost of labour and productivity in the economy
• Rate of inflation
• Rate of interest

 

Social factors

The culture of the society and the way of performing things has an impact on the organisation’s culture in an environment. Shred beliefs as well as attitudes of the population plays a big role in the way the marketers will understand the customers of a particular market and the way the marketing message will be designed for the consumers of the oil and gas industry. The social factors which the company should consider are as follows:

• Demographics and the level of skills of the population
• Structure of class, hierarchy as well as power structure in society
• Level of education and the standard of education in the industry
• Culture
• Broader nature of the society
• Attitudes
• Interest of leisure

 

Technological Factors

Technology is fast disrupting different industries across the board. Over the past few years the industry has been transforming very fast and it does not give the giving chance to the developed players for coping up with the changes. The company should not only do technological analysis of the industry but also the speed at which the technology disrupts that industry. The technological factors that should be taken into consideration are as follows:

• Recent development of technologies by the Shell competitors
• Impact of technology on the offering of product
• Impact on the structure of cost in the industry
• Impact on the structure of value chain in basic materials sector
• Rate of technological diffusion

 

Environmental factors-

Various markets have various norms or the standards of environment that can impact the profitability of organisation in those markets. Even within a nation generally states can have various environmental laws as well as liability laws. Some of the environmental factors which the company must consider are as follows:

• Change in climate
• Weather
• Laws that regulate the environment pollution
• Regulations of air and value in industry
• Recycling
• Species which are endangered
• Attitudes toward and the support for renewable energy

 

Legal factors

In many nations the legal framework is not robust enough to secure the intellectual property rights of an organisation. The legal factors that the company should consider are:

• Law of discrimination
• Law of employment
• Health and safety law
• Protection of data
• Protection of consumer and e-commerce

 

Shell PESTLE Analysis

Political	Economic	Social	Technological	Legal
Trade regulations as well as tariffs related to basic materials Risk of military invasion Rate of tax and incentives Mandatory benefits of the employees Minimum wage and overtime Work week regulations in integrated oil and gas Regulations of pricing Favoured partners of training	Intervention of the government in free market and related basic materials. Rate of exchange and stability of the currency of host country Quality of infrastructure in major integrated oil and gas industry Stage of business cycle Economic growth rate Cost of labour and productivity in the economy Rate of inflation Rate of interest	Demographics and the level of skills of the population Structure of class, hierarchy as well as power structure in society Level of education and the standard of education in the industry Culture Broader nature of the society Attitudes Interest of leisure	Recent development of technologies by the Shell competitors Impact of technology on the offering of product Impact on the structure of cost in the industry Impact on the structure of value chain in basic materials sector Rate of technological diffusion	Law of discrimination Law of employment Health and safety law Protection of data Protection of consumer and e-commerce

 

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