Introduction
The following paper is a review on Royal Dutch Shell, popularly know as Shell, business management strategies and recommendations that will enable the multinational company better compete in the global scene. Consequently, I will develop a strategic plan for Shell as well as analyse the company’s strengths and weaknesses, its internal and external business environment and its role in the execution in the strategic plan. I will begin by assessing Shell’s mission, vision and objectives, illustrate the strategic plan, conduct a stakeholder analysis, look into the company’s entry strategies and ways to monitor its strategic plans.
Shell Organisation and Objectives
Shell is one of the world’s leading oil and gas corporation, …show more content…
The first strategic plan is to strengthen its dominance in the oil and gas sector. Bosman (2014) notes that Shell faces a dilemma of consolidating its leadership in the face of global awareness about the need to progress towards low carbon structure. This means that Shell needs to devise a plan that will enable it position its development in a situation of imminent transition. The second strategy is to make the latest acquisition between Shell and the BG Group work. Shell’s acquisition of BG is estimated to be roughly $50 billion giving the company pre-eminence in its Brazil venture and the opportunity to maximize on its economies of scale (Connors & Kent 2015). This require streamlining of operations and business management. The third strategic plan is developing a simpler corporation that provides ample returns (Shell Global 2016). The company aims to do this through investing in suitable projects, cost reduction and auctioning less vital …show more content…
According to Hill and Jones (2009), strategic planning process in an organisation is about understanding what the organisation is about, the resources that exist within the organisation, where the organisation want to take, and how to get to that point. Based on Shell’s vision, the company aims to be a leader in the oil and gas sector. This is line with the strategic goals of the company, which are enforcing its dominance, making is acquisition work, and investing is suitable projects. To do this, Shell has to agree with is shareholders on the lucrative projects to begin. This may entail joint ventures and more mergers. The company has to assess its funds and assets to engage in some of the necessary venture and to have a competent human resource to implement the plans. The outcomes need to be monitored and controlled to ensure absolute success. Some of the issues faced in the strategic planning process include lack of full commitment to the plan, which may lead to failure during implementation. The other issue relates to involving one stakeholders – that is shareholders, and not other stakeholders who will be affected by the plans. The problem with not involving all stakeholders is that it causes problems in future when the affected stakeholders experiences a problem and was not involved in the decision-making process. In such a case, the
The following paper is a review on Royal Dutch Shell, popularly know as Shell, business management strategies and recommendations that will enable the multinational company better compete in the global scene. Consequently, I will develop a strategic plan for Shell as well as analyse the company’s strengths and weaknesses, its internal and external business environment and its role in the execution in the strategic plan. I will begin by assessing Shell’s mission, vision and objectives, illustrate the strategic plan, conduct a stakeholder analysis, look into the company’s entry strategies and ways to monitor its strategic plans.
Shell Organisation and Objectives
Shell is one of the world’s leading oil and gas corporation, …show more content…
The first strategic plan is to strengthen its dominance in the oil and gas sector. Bosman (2014) notes that Shell faces a dilemma of consolidating its leadership in the face of global awareness about the need to progress towards low carbon structure. This means that Shell needs to devise a plan that will enable it position its development in a situation of imminent transition. The second strategy is to make the latest acquisition between Shell and the BG Group work. Shell’s acquisition of BG is estimated to be roughly $50 billion giving the company pre-eminence in its Brazil venture and the opportunity to maximize on its economies of scale (Connors & Kent 2015). This require streamlining of operations and business management. The third strategic plan is developing a simpler corporation that provides ample returns (Shell Global 2016). The company aims to do this through investing in suitable projects, cost reduction and auctioning less vital …show more content…
According to Hill and Jones (2009), strategic planning process in an organisation is about understanding what the organisation is about, the resources that exist within the organisation, where the organisation want to take, and how to get to that point. Based on Shell’s vision, the company aims to be a leader in the oil and gas sector. This is line with the strategic goals of the company, which are enforcing its dominance, making is acquisition work, and investing is suitable projects. To do this, Shell has to agree with is shareholders on the lucrative projects to begin. This may entail joint ventures and more mergers. The company has to assess its funds and assets to engage in some of the necessary venture and to have a competent human resource to implement the plans. The outcomes need to be monitored and controlled to ensure absolute success. Some of the issues faced in the strategic planning process include lack of full commitment to the plan, which may lead to failure during implementation. The other issue relates to involving one stakeholders – that is shareholders, and not other stakeholders who will be affected by the plans. The problem with not involving all stakeholders is that it causes problems in future when the affected stakeholders experiences a problem and was not involved in the decision-making process. In such a case, the