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Firm€™s operations, management structure, corporate governance industry, competitors, business particulars and its motivation to operate as a MNC - Essay Example

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Royal Dutch Shell Plc is one of the most powerful companies in the international market; the firm operates in the energy and petrochemical sectors and has more than 100,000 employees around the world (Royal Dutch Shell Plc, corporate website, 2010). The firm’s operations in…
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Firm€™s operations, management structure, corporate governance industry, competitors, business particulars and its motivation to operate as a MNC
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Firm€™s operations, management structure, corporate governance industry, competitors, business particulars and its motivation to operate as a MNC

Download file to see previous pages... s been positive for the years 2004 up to 2008 – see Figures 2 & 3 in the Appendix sector; this increase of the firm’s profitability for the specific years is also proved by its financial ratios for the years 2004 to 2008 (see Figure 4, Appendix). The success of the firm has been related with its structure; furthermore, the style of its governance supports the firm’s continuous expansion. Another factor that led to the growth of the company in the global market is the firm’s motivation to operate as an MNC. The effects of the recession on the firm’s performance can be identified in Shell’s financial reports for the previous years – also to the performance of its share. It seems that the effects of the global crisis on the firm’s performance have been limited.
As noted above, Royal Dutch Shell Plc operates in the energy and petrochemical sectors; however, initiatives have been taken regarding the expansion of the firm’s operations in new areas – and the development of its existing areas of operations: more specifically, through the firm’s new facility in China it is expected that the firm will further improve its performance in the lubricants market; at a next level, the firm has established new processing units in Singapore (Royal Dutch Shell Plc, corporate website, 2010); Among the firm’s key policies for the expansion of its operations has been ‘association with Iogen and Codexis to develop better enzymes and processes for the production of biofuels from straw’ (Royal Dutch Shell Plc, corporate website, 2010). All the above activities are considered as particularly important for the development of the firm’s operations and the further improvement of its position against its competitors.
The management structure of the firm is quite simple; in fact the firms is based on ‘a single-tier Board of Directors chaired by a Non-executive Chairman, Jorma Ollila; the executive management is led by Chief Executive Officer, Peter Voser’ ...Download file to see next pagesRead More
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