We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Shell - Essay Example

Comments (0) Cite this document
Summary to essay on topic "Shell"
a) The oil reserves controversy is the making of the top management of the company. The CEO of the company between 1997 and 2000 has obviously overbooked in his anxiety to become known for 'reserves booking'. There was really no major pressure for the company to book more during that period except to show better results to the share holders…
Download full paper
Polish This Essay
Read TextPreview

Extract of essay "Shell"

Download file "Shell" to see previous pages... There is no laid out rule that clearly states what and how the reserves of oil is to be estimated, though there are guidelines given by SEC for the purpose. SEC guidelines were also not met by the reserves estimation that was declared by the executives of the company and they knew it all along. Continuing pressure on non-declaration of the actual reserve estimation in line with the law,
Let us write or edit the essay on your topic "Shell" with a personal 20% discount.. Try it now
made them to come out and accept a revision in their reserves. This made the share prices tumble and the company started losing its standing in the market place. Whereas compared to its competitors the company should have been rated low even in 1997, but the executives of the company for holding up their company's performance, raised the reserves ratio and other key performance indicators of the company.
This could be looked at as the pressure on the company to really escalate figures. Though this cannot be construed to be a valid reason for artificial escalation of the figures, it is the predominant reason why the reserves were shown bloated. The corporate governance at the company has been lacking the guts face up to the situation. The major cause of the problem is that the executives could not stand up for a loss of face in the initial run and still thought even after knowing that wrong representation has happened, the second note from Vijver to Watts on 22 Jul 2002 indicates that the company executives were planning really to cover up this even in the last minute. They expected to cover up the entire additional reserves indicated using either of the project maturation, license extensions and new exploration successes. It is important therefore, to note that the corporate governance in the company at its top level had sinister views. The overall company performance itself was in a quandary and to hide the same these fictitious reserves have been brought up.

The lack of appropriate planning to counter the fall of reserves, the lack of judgment on the part of the executives to bring about changes in the company so that such performance degrading would not have happened are the major causes for the failure of the company. This is essentially a failure of the corporate governance. Secondly, a well governed organization will have its own corporate correcting and auditing mechanism that will bring even the top management under its purview. If someone should direct the company in a wrong direction, then the company should have a mechanism to throw it up early on or immediately after its occurrence. This will be the ideal control mechanism. In a well governed company that will be the case. A failure of corporate governance is obvious here since such a mechanism has failed to exist in the company or has failed to be active.
b) After 2000-01, Shell management decided to come out because of the constant nagging fear that they might really be caught making this mistake and lying to people consistently. Vijver, the CEO of the Shell EP, was also of the view that the RRR of the company has to be maintained since it would a major performance index that share holders will look at when deciding on the price in the market. The disclosure of the reserves had to happen since because of the disclosure that was done in a memorandum prepared by the staff of the EP. There was also an observation in the memorandum by the law firm, Cravaith, Swaine & Moore that the ...Download file "Shell" to see next pagesRead More
Cite this document "Shell"
  • APA
  • MLA
(“Shell Essay Example | Topics and Well Written Essays - 1000 words”, n.d.)
Retrieved from https://studentshare.org/miscellaneous/1510655-shell
(Shell Essay Example | Topics and Well Written Essays - 1000 Words)
“Shell Essay Example | Topics and Well Written Essays - 1000 Words”, n.d. https://studentshare.org/miscellaneous/1510655-shell.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document
Shell Company Essay Questions
The aim of Shell is to meet the growing needs of energy with environment-friendly and economically sustainable means (Shell). The strategy of the company is to innovate technologically and provide environment-friendly energy to generate profitable growth and increase shareholders’ returns.
8 Pages(2000 words)Essay
Shell Canada
Shell Canada is one of Canada’s leading explorers and producers of petroleum products. Apart from being one of the leading producers of petroleum products in the country, Shell also engages in the sale and distribution of petroleum products in the country and beyond.
4 Pages(1000 words)Essay
Shell Group
The merger was to enable the newly formed company to be able to compete with the American oil giant, Standard Oil, owned by the John D. Rockefeller (Grant 2002, p. 2). The nature of the petroleum industry that has to this day, has been characterized by oil as an energy source, contingent on geopolitical play of forces and thus, out of the reach of the perfect interplay of market forces and the high transaction costs along the supply chain, from extraction (upstream) and to refining and distribution (downstream) - allowed the company to maximize its margins and stay vertically integrated while developing a strategy in recent years to reorganize that was based less on geographical consideratio
8 Pages(2000 words)Case Study
Royal Dutch/Shell Group
The goals focus on the overall strength and independence of the company and its products or services, flexibility of overall offerings, and marketing differentiation.
10 Pages(2500 words)Essay
Shell Oil Company
As many as 22,000 employees of Shell work in the US and they have the largest Oil unit in the US, their base is also located in the US. “The objectives of the Shell Group are to engage efficiently, responsibly and profitably in oil,
2 Pages(500 words)Essay
Shell company
Prior to the merger, Royal Dutch and Shell Transport were public companies originating in Netherlands and in the UK respectively. (Omoweh, 2005) The complete merger of the two entities took place in 1907 thus the starting of The
4 Pages(1000 words)Essay
Environmental Report (Shell)
Bringing the reader to conclusion that Shell is actively working to be an environmentally friendly company, looking to provide products and services well into the future. INTRODUCTION Most countries have regulatory laws on the book designed to protect
12 Pages(3000 words)Essay
Transformation of Shell - 4
In 1995 Shell was restructured into five global business units by replacing the matrix form of organization structure which the company had been following since 1950. Each of this business unit has separate superior authorities to watch over various matters associated
2 Pages(500 words)Essay
Usage of space in shell
Accordingly, some of the world’s largest companies have made significant investments on operational space, in a bid to maximize operations and consequently make more profits. Consequently, this
4 Pages(1000 words)Essay
Rc car shell
The shell is the outlook of the RC car because it brings out its beautiful look and makes it interesting and worthwhile. The shells or RC cars exist in many
10 Pages(2500 words)Essay
Let us find you another Essay on topic Shell for FREE!
Contact us:
Contact Us Now
FREE Mobile Apps:
  • About StudentShare
  • Testimonials
  • FAQ
  • Blog
  • Free Essays
  • New Essays
  • Essays
  • The Newest Essay Topics
  • Index samples by all dates
Join us:
Contact Us