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Success of Royal Dutch Shell Where Many Others Have Failed - Research Paper Example

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This paper "Success of Royal Dutch Shell Where Many Others Have Failed" explores the theories that were developed by Langlois, Jones, and Chandler and can be applied to most of the multinational corporations and this is mainly through the evolution of their structures and strategies over the years…
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Success of Royal Dutch Shell Where Many Others Have Failed
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Download file to see previous pages Since its formation, Royal Dutch Shell has continuously grown and evolved according to the different circumstances that it has encountered; essentially ensuring its success where many others have failed.
According to Jones (2005, p.164), in the twentieth century, “firms sought to access knowledge to develop technology that is distinct from but contemporary to those created by their parent companies.” At the period of its formation, the two parts of Royal Dutch Shell were not merged but were kept separate as a result of nationalist sentiments in both the Netherlands and the United Kingdom. The result is that these two parts of the company continued to be run as separate entities with one based in The Hague and the other in London. The portion based in The Hague took on the responsibility of production and manufacture while the one in London took over the transportation and storage of the products. Thus, in order to cater to nationalist sentiments in both countries, Royal Dutch Shell chose not to go ahead with the merger because to do so might have hampered its operations. This strategy can be related to Alfred Chandler’s structure follows strategy theory which states that the structure of a company is often determined by its strategy and this is based on the formation of independent units that operate under the umbrella of a parent company (Chandler 1990, p.61; Gopalan and Stahl 1998, p.32). Thus, through its headquarters, Royal Dutch Shell was able to continue coordinating the activities of its Dutch and British units without compromising their independent nature. ...Download file to see next pagesRead More
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