Shell Case Study

Shell Introduction

This study seeks to look into the case of Shell in order to effectively and efficiently gauge its internal and external environment factors which put an effect on the company. The study seeks to outline the company profile primarily to get an understanding of the business of the company. The study then seeks to conduct a detailed SWOT analysis in the case of the company in order to understand the internal factors that affect its operations and market. The study also seeks to understand the external factors by effectively undertaking a PESTLE analysis in order to gauge the external influences on the company. 

Company profile

Table 1: Company profile

Shell Swot Analysis

Table 2: Swot Analysis

(Source: As influenced by Bentham, 2019)

Shell Analysis

Strengths

As per the case study of Shell it can be viewed that the organisation has a wide range of strengths which include its strength in the oil and gas sector due to wide presence of the company. This indicates that the company holds a major proportion of market share in the case of the industry. According to Bentham (2019), Shell also has the ability to quickly adapt to its environment and this ensures that the organisation can make swift changes to its structure to adapt to its market. In the case of the Shell organisation the strong relationships with customers aids to the organisation's sustainability and market development.

Weakness

As viewed in the case study of Shell it has been viewed that even though there is a prevalence of string core beliefs the organisation still suffers from the major sustainability challenges in terms of the sustainability of the industry of oil and gas. The company has also in recent times, had to slash its resources and this has become a major drawback for the functioning of the company and its operations. It can also be viewed that in the case of Shell there are a number of ethical issues which are faced by the company such as that of spillage and this leads to adverse effects on the business.

Threats

The major threats to Royal Dutch Shell as studied in the case are that of its competitor companies such as BP and Chevron. These companies are major contenders in the case of the oil and gas industry and they also have brought about sustainable technology changes in their systems. This proves to be a major threat for the organisation as it needs to develop its processes and pertain to the ethical issues in order to ensure appropriate process compliance and efficiency.

Opportunities

As per the case study of Shell it can be understood that the company has a major opportunity area in the case of alternative energy sources. Shell may choose to move into alternative energy segments in order to effectively maintain the sustainability of their business in the industry. Alternative energy sources are more in consideration with sustainable development processes and this would also help the company in order to effectively secure a greater share of the market as it is an emerging segment. 

Shell Pestel Analysis

Table 3: Pestel Analysis

(Source: As influenced by Grubler et al. 2018)

Shell Analysis

As per the case study of shell it can be viewed that there are a host of different factors such as that of the requirement of sustainability in the processes which affect the organisational policies adversely. In the light of the changing demographic demand in the market and the focus on sustainability, the company is pressured by its external market in order to bring in sustainable methods. It can be viewed that the investment index of Bovespa fell by 0.78% and Joeseley Batista and Michel Temer fall by 27.75% (Forbes.com, 2018). As per the case study it can also be viewed that the Shell organization also lags behind its competitors in terms of the sustainable technological developments which are required to be brought in. the development of sustainable systems such as Enhanced Oil recovery and Waste Heat Energy management processes prove to pose a major threat to the organization in the case of the evolving, market. The organisation needs to effectively develop their systems to match the demands and needs.