Performance of the Shell Corporation - Case Study Example

First and Investigating business Aims and objectives for Shell Corporation The Shell Corporation is one of the world’s biggest leaders that provides oil and oil products to the customers, engaging efficiently, responsibly and profitably in gas, chemicals and other selected businesses and participating in the search that enables its further development in other sources of energy. Since there is a great demand for energy use, the company does everything to meet the customer needs and the world’s growing requirement for this source. Shell Corporation considers oil and gas to be the integral part of the global energy needs and thus ensures profitable, environmentally friendly and socially responsible ways of providing communities with the energy source. One of the main objective of the corporation is to provide high standard of performance of its products, keeping a strong long-term and growing position regarding the competitive environments where the company is able to choose how to operate. It aims to work closer to its customers, partners and policymakers to promote more effective and sustainable use of energy and natural resources (Our purpose, n.d.). The company realizes that behind the hugest global energy challenge there is a human resources contribution. It helps to transform the world’s energy system into the advanced technical possibility utilized on a real global basis. According to the International Energy Agency, the worldwide consumption of energy will be doubled in the nearest future because of the rapid growth of the population and economic availabilities in developing economies. Such fast growth is believed to be in Asia, as a new generation of consumers buy cars in that particular area. Thus, in China the energy use increases by more than seventy percent until 2035. The same picture is with India. That is why, the world needs to develop the alternative to oil and natural gas sources of energy. Besides, many consumers and governments around the globe are increasingly concerned about the ways that will enable them to reduce the environmental impact of such big energy consumption. At Shell Corporation, the renewable energy sources such as biofuels, nuclear power, solar and wind could supply up to thirty percent of the global energy by 2050, comparing to the thirteen percent that are today. However, the company also thinks that in 2050 about sixty percent of energy sources will be still fossil fuels, such as coal, oil and natural gas and ten percent as nuclear energy. Shell will have to develop innovative ways that will help it to find more energy to meet the consumers’ needs and world’s demand, making cleaner fossil fuels. That is why the company sets the objective in motivating its employees with technical expertise with the wide range of such disciplines as microbiology. At Shell, the company members do a great deal of work preparing its employees to take challenges of the company. The recruiting of talented people help the vision of the company and builds a more sustainable energy system. Training and experience obtaining put their good ideas into practice, thus influencing the entire image of the company. Managing talents on a global scale ensure the right people in the right places that drive the success of Shell Corporation. How Shell key stakeholders compete its priorities The external stakeholders do not interfere the Shell activities, however, they are interested in what Shell business does and may also influence its decision-making process. Since the company is committed to satisfying the external stakeholders needs, it does all to win and maintain its customers, developing products and implementing services that offer value, good price, high quality, ensure safety and sustains environment, at the same time supported by technological, commercial and environmental expertise. So it is true for Shell that without customers a business would not exist. Moreover, customers want value for money, want the highest quality fuels at competitive prices. This is the priority of their needs. Moreover, safety and environmental impact are also the key components of the research and development process and customers can be also concerned about these factors while trusting the company, which services and products they use. Thus, pollution and environmental damage demand cleaner and more effective fuels such as biofuel. Shell Corporation listens to the requirements of its consumers and responds accordingly to the changes in their views. It seeks the ways that would help it to foresee the future customer expectations from the Shell products and services. Since Shell products include fuels and lubricants for all types of transport, cars, ships, airplanes and trains, it should set the highest environmental standards and meet the expectations for all of its customers on the global level. By managing greenhouse gases, energy efficiency, control of waste and the impact on water the company is able to win the consumers trust and stay in the leading position of the oil industry. Advantages of Shell organization structure Shell global businesses are in the level of changes and transformtion. The upstream businesses of Exploration & Production and Gas & Power are changed into Upstream Americas and Upstream International. Shell Upstream International business look for oil and natural gas in the international markets. Many of the company’s activities are run out as joint venture partnerships. It liquefies gas and is engaged with the transformation of gas to liquids technology. Shell Upstream Americas business searches for and regains oil and natural gas inside the Americas. Many of these activities are carried out with national oil companies. One of the considerable advantages for the company is that its Projects & Technology business operates delivery of Shells main projects, drives the research and innovation that enables the company to create technology solutions. Thus, such activities include coal gasification technology that provides technical services and technology capability for the upstream and downstream activities of the company. Advanced exploration and production information technology is what the company can be distinguished among its rivals. Shell also stand over safety and environment performance. Among the other advantages of the Shell Corporation structure is that it runs its activities to improve the wellbeing of local communities and has created local partnerships supporting the development of local schools and universities. Thus, one of Shells initiatives Shell LiveWire, an online community for young entrepreneurs who want to start a business in this sphere, provides people with the useful information and resources that help them turn ideas into business realities. Aims and objectives for UNICEF The United Nations Childrens Fund was created by the United Nations General Assembly as the long-term humanitarian assistance, which aim is to defend rights of children and help meet their main needs for the expanding of their opportunities to reach best results. It is guided by the Convention on the Children Rights and deals with the providing of childrens rights according to the ethical principles and international standards of behavior regarding children. The main objective of this program is the protection and development of children as the integral part to human progress. It fights for the promotion of childrens emotional and physical well-being usually caused by the disasters or other complicated situation in their lives. Active in more than a hundred countries across the world, UNICEF promotes health and development for children, their protection, social inclusion and equality regarding their gender. It summons up political decision and material resources to assist developing countries and ensures a first aid for children. UNICEF builds its competence I order to create appropriate policies and bring services for children and their mothers. One of the main goal of the program is the ongoing health initiatives that include mass immunizations for disease prevention, the promotion and protection of breastfeeding and fight against HIV/AIDS. Besides, the program is called to help women and girls to survive different social and economic complications that they experience through their lives and the development of their capabilities within the certain communities (UNICEFs mission statement, 2003). Advantages of UNICEF form of ownership As international program, UNICEF carries out charitable work across different areas. Summarizing its work, the program is oriented on assisting peoples welfare, building its experience and working in cooperation with other United Nations agencies. Collaboration with the partners stimulates dialogue about the macro level policies that enable guiding of the national frameworks, various legislative reforms and budgetary limits that affect children and their families. The structural network of UNICEF that consists of social policy advisors and officers’ work enables them to develop and strengthen the important external partnerships in the country, region or area they perform their activities. On the global level, such collaboration is with the ministries of finance and parliaments, the World Bank, the International Labor Organization, United Nations Development Program and United Nations Department of Economic and Social Affairs. Its Upstream policy work has generated an enhancing involvement with civil society, giving its citizens right to exercise their degrees of freedom and participate in the public policy decisions. Since childrens rights are at the center of global and country-level policy debates, UNICEF uses certain measurement to manage and monitor progress in terms of the Millennium Development Goals and responds the national and international policies. It examines precisely the norms and standards set out in the Convention on the Rights of the Child and the Convention on the Elimination of All Forms of Discrimination against Women so monitor their adherence by all the members of the community (UNICEF Social Inclusion, Policy and Budgeting, n.d.). Advantages of UNICEF structure Every country office abides UNICEFs mission through a unique program of collaboration between the developed governments. Such program focuses on practical ways of realization of children and women rights around the globe. These needs are analyzed and reported in order to produce the program cycle. Regional offices monitor and ensure technical help to the country offices if needed. A position of being a fully part of other United Nations activities ensures UNICEF a considerable advantage in reaching its main goals. Besides, the management and administration of the program takes place at headquarters, where global policy on children is shaped and that helps the organization to establish main principles in tight cooperation with all the involved members. Many people in developed countries first hear about UNICEF program work through National Committees activities, which are done under the patronage of UNICEF. These non-governmental organizations encourage and defend children’s rights, they raise funds and sell UNICEF greeting cards and other products in order to create main corporate and civil society networking. They also provide others with the necessary support. What makes the program important for others is that UNICEF is supported entirely by voluntary funds and governments contribute only two thirds of its resources. Private groups and individual donors gather the rest through the National Committees.  UNICEF key stakeholders As the program lives by means of charity funds mainly, its internal stakeholders, the staff are mostly countries representatives and volunteers who will to make their contribution to the lives of children and are ready to fight for their rights. Different third parties, the external stakeholders of UNICEF are partners, such as businesses and NGOs that cooperate close with the program. These are also relevant departments and offices with their members in different countries. The program deals with such work as securing funding for HIV/AIDS and immunization programs. That is why, there is a great importance in building alliances with the local communities, because it helps them to ensure proper education, protection and well-being of children. With the young people of more than half the world’s population, UNICEF encourages them to become leaders in making a difference in their communities, conducting various campaigns at their schools and be the main activists for fighting for children rights. They are able to represent their vision of the concerns and views of their peers, because of the alikeness in their views. Thus, many of such young leaders participate in forums, youth parliaments, international meetings by which they engage the inter-generational dialogues with adults in main positions of decision-making. Besides, there are other group of the internal stakeholders, which UNICEF always welcome as its members. These are the celebrities that have a wide range of talents and achievements. They will to share a commitment in order to improve the lives of children worldwide. Thus, attracting more public attention to the existing problems they focus the world’s eyes on the needs of children in their own countries and on the international arena. They make direct representations to all the community and those with the ability to effect change. They use their talents and fame to fundraise and help children, supporting UNICEF’s mission. In addition, UNICEF’s supporters include usual individuals, eminent personalities and children who understand the problems and needs of others and who are able to help. Assessment of the business environments for Shell Corporation The modern world with its stakeholders requires more transparency from the organizations like Shell Corporation. Fossil fuels become more costly because of the mass consumption and logistically harder to extract. It is also true, that no company wants to become that popular as British Petroleum with the damage it made two years ago during the Deepwater Horizon catastrophe. Shell is already some steps ahead of its main competitors, being the founding member of the UN Global Compact and supporting the move towards progress on labor and anti-corruption. At the same time, the company expects for a growing population and a growing demand for energy, and here Shell comes first in offering fossil fuels. It is already focused on combatting CO2 emissions. In addition, it supports a network of community health centers in the Niger Delta. Such activities have benefitted thousands of rural population in treatment with HIV/AIDS and malaria (Kaye, 2012). SWOT and Pest Analysis for the newspaper report Beside the company’s internal resources and other factors that affect certain industry, other macro-economic elements greatly influence the performance of a company. In certain situations, these factors need careful analysis in order to identify how their role in the organization’s success should be represented. Once analyzing political, economic, social and technological factors, it will help to determine how they influence the activities of a certain business in the long-term. Used with such analytical business tools as the SWOT analysis, will give the company availability to understanding a situation and related internal and external factors clearer. Thus, according to the news, Lego will not renew its marketing contract with the Shell Corporation after it (Lego) came under great pressure from Greenpeace. This ending of a partnership will be the first since 1960s. The reason of the Greenpeace and Lego is in the environmental campaign group, that protests against the oil giant’s, Shell’s, plans to drill in the Arctic. Lego would honor its existing deal with Shell, however, due to the latest plans of Shell, their contract with the corporation will end. The Lego toy company distributes its products at petrol stations of more than twenty six countries, valuing its deal in more than sixty million pounds. It had stated that the relationship had a positive impact on the world because Lego toys inspiring thousand of children. However, its positions are severe in terms of potential harm to the environment that Shell may make and this is not acceptable for the company who works for children as the future of the planet. Moreover, analysts consider that the recent move by Lego would prompt other organizations that cooperate with Shell, such as London’s Science Museum, to think over their partnerships (Vauhan, 2014). If to analyze the situation with Shell and Lego using the Pest analysis, there will emerge certain social contradictions in the way Shell runs its activities in Arctic. With the world growing energy needs, it aims to bring benefits to local communities, but at the same time, reducing impacts of its operations. However, drilling in Arctic is serious ethical concern, which may arouse different bad effects for the Shell Corporation. While company’s core values are honesty, integrity and respect for people, the fact that Lego stops cooperation with Shell evidenced about the contrary. From the economic point of view, Shell must provide timely, accurate, consistent, complete and fair public disclosure of information to enable its investors to be informed and make proper market decisions. However, the situation with Lego and potential thread in cooperation with the London’s Science Museum may seriously affect the positive image of the Corporation. Shell has already faced the legal issues, such as violations of the Clean Air Act. It caused the huge fines to the company. Besides, accusation of the company in breaking the contract and violating the Petroleum Marketing Practices Act along with the Polybutylene lawsuit greatly affected the business environment of the Shell Corporation. Notwithstanding its efforts to implement the ways in reducing the impact of its operations, Shell will again suffer from losing friendship with Lego, London’s Science Museum and other similar companies that would see in Shell’s actions unethical behavior. Social growing energy needs demand; negative consequences from drilling in Arctic Economic timely, accurate, consistent, complete and fair public disclosure of information; potential thread in cooperation with eco- friendly companies Political greater climate loss of stability from CO2 emissions; violations of the Clean Air Act; efforts to implement the ways in reducing the impact of its operations; losing of partnership with Lego, London’s Science Museum and other similar companies Technological alternative energy markets to be underpinned; Strength -biggest name in the field of energy  strong brand -high financial growth  -latest technology  -operations in over 90 countries Weaknesses -legal issues  -environmental issues -children honest and pronounced view on things, such as the Earth and animals  Opportunities -establishing new relationship -buying out competition  -increasing demand for fuel Threads -government regulations  -high competition from Chevron, Exxon Mobil and BP  -environmental laws  -economic instability References Balancing stakeholder needs, A Shell case study, n.d. Business case studies Available from http://businesscasestudies.co.uk/shell/balancing-stakeholder-needs/external-stakeholders-customers-communities.html#axzz3IkBbNHxj Kaye, L., 2012. Shell Touts Communities, Environment in Recent Sustainability Report, The TriplePundit, Available from http://www.triplepundit.com/2012/04/shell-2011-sustainability-report/ Our vision, n.d. The official web site for Shell Corporation, Available from http://www.shell.com/global/aboutshell/who-we-are/our-purpose.htm UNICEF Social Inclusion, Policy and Budgeting. N.d. The official web site, Available from http://www.unicef.org/socialpolicy/ Vauhan, A., 2014. Lego ends Shell partnership following Greenpeace campaign, The Guardian, Available from ttp://www.theguardian.com/environment/2014/oct/09/lego-ends-shell-partnership-following-greenpeace-campaign Read More