Investigating Business: Shell and Alton Towers - Essay Example

Investigating Business: Shell and Alton Towers Introduction Companies are different depending on the nature of their industries, thepurposes upon which they are formed, aims and objectives, forms of ownership and organizational structure. While some of these factors may intersect, there is a very big gap between the operations of different companies. For purposes of this paper, we would examine comparison and contrast between Shell and Alton Towers. Shell The Purpose of Shell Oil Company The purpose of Shell Oil Company is to ensure extraction and delivery of global energy needs in socially and environmentally responsible ways while making the process profitable for the entire stakeholders involved. Shell recognizes the need for global energy for economic development. Shell understands the competitive nature of the oil sectors and therefore purposes to offer a growing position in the industry maintain strong long term position and provide high standard performance. Aims and Objectives of Shell Oil Company The aim of Shell Oil Company is to work closely with different stakeholders in the oil sector such as policy makers, partners and customers in order to advance better, sustainable and more efficient use of natural resources and energy. The objectives of Shell Oil Company is to deliver sustainable excellence in the performance in business by targeting on; Benefitting the shareholders, Realization of the potential of the people involved with the company, Meeting the requirements of the customers, Maximization of refinery margins, Safeguarding asset integrity, Delivery of structural costs reductions, Sustenance of a robust management system, and Delivery of a continuous sustenance environmental excellence, security, safety and health. Forms of Ownership of Shell Oil Company Shell Oil Company has been a solely owned subsidiary company of Royal Dutch Shell since 1985 when the Royal Dutch Shell bout all the remaining shares of Shell Oil Company. Before 1984, the company was traded in the New York Stock Exchange and all operations were free from those of Royal Dutch Shell. Nevertheless, when the remaining shares of company were bought as $5.7, Royal Dutch Shell acquired full ownership of Shell Oil Company (Beaton, K., 1957). Shell Oil Company has been able to remain independent of its holding company in all operations but they have inherent standards procedures which were inherited from the parent company. For instance, the US Shell oil company logo was different from the rest of the world prior to 1998. The Shell oil company in the US is a corporation which has a separate legal entity from that of its parent company. Due to full ownership of Shell development, Shell underwent the whole process of Americanization where it was permitted to bring all research in the US (Bridges, H., 1972). In the US, the ownership of Shell Oil Company is decentralized where different people can own and manage it anonymously. Anybody can be an owner in Shell oil company, whether a native or a foreign person. Given the large number of foreign ownership in Shell and the prohibition of landholding permits by aliens in most states in the United States, there were many obstacles faced in the ownership of Shell Oil Company both at the federal and state levels. However, most of the obstacles have been solved and there are always new owners in Shell (Howarth, Jonker, & Sluyterman, 2007). Organizational Structure of Shell Oil Company In 1980s, the organizations structure at Shell was matrix organization. It was headed by one person per operating company who would then report to two upper bosses, one who was in charge of business activities and the other one in charge of regions or the country the company is operating in. this organization structure was effective for Shell as it allowed for consensus in decision making since decisions made in the oil sector are mostly long term. However, the process was slow and cumbersome. In 1995, Shell changed its structural organization and adopted the functional structure by reorganizing its operations along divisional lines. Every operating company started reporting to an equivalent global division and the heads of the operations would report to the head of global division directly. This is the organizational structure of Shell up to this point in time (Hill, 2005). Alton Towers The Purpose of Alton Towers Company Alton Towers can be described as a business of leisure, its main purpose is to provide a thematic park to families and delight seekers. Alton Towers Resort has two fabulous hotels and it also has United Kingdom’s most famous theme park. Other facilities such as luxurious spa, themed golf course, conference center are hosted in Alton Tower. With all these descriptions of Alton Towers it is with no doubt that the main purpose is to provide a recreational site like no other in the world. This has seen Alton Tower to be named the second most fascinating recreational site around the globe after Disney. An element of purpose is contained in a mission statement explaining to the customers why the organization exists, what the organization is dealing with and the reason it does the business (Blanchard & Stoner 2003). The mission statement of Alton Towers which explains its purpose is, "To dazzle our guests with the most captivating city center attractions in the world and the most diverse and exciting portfolio of theme parks in Europe." Aims and Objectives of Alton Towers Company The aim of Alton Towers (merlin Entertainment) is inspired from their strategy and vision. The company’s aim is to form an international, high growth, family entertainment company with strong brands and a collection that is naturally hedged against external factors such as localized market conditions. The company has various objectives to that are aimed at making sure the aim and purpose of the business ids achieved. The main goals of the Alton Towers are; to improve guest experience, which is enhanced by allocating the right capital expenditure to boost resources that will enhance experience of any guest. Another objective that is part of Alton Towers is to roll out established chainable brands globally, which is aimed to boost attraction. Destination positioning is the next objective that Alton Towers has, the intention of this objective is to position Alton Towers’ theme park as a short break destination in order to elevate their market reach and asset use. In regard to this objective more developments are enhanced to broaden the existing market. Alton Towers has also placed visitors as their number one priority in all aspects as one of their objectives. This is a very important objective as in relationship to development strategy; this is because it will be difficult for a company to develop if it doesn’t care about its clients. Customer service should be high since satisfied visitors will visit Alton Towers again. Forms of Ownership of Alton Towers Company The form of ownership of Alton Towers is private limited company that is owned by Merlin Entertainment Group (MEG). This means that members of the public can not only buy shares in MEG if they wished to (Keenan & Denis 2003). It would be very prudent for the sake of business development if Alton Towers was changed to public limited company. The advantage of this is that Alton Towers would become known across the globe and attracting a higher profile on the stock exchange. The only challenge that would arise is whether can stand on its own without MEG as it would be totally independent. Organizational Structure of Alton Towers Company Alton towers can be described a company that has adapted a decentralized organizational structure that sets out; job roles, channels of communication and level of authority. The company owners have delegated decision making to senior managers, middle managers and junior managers. There are various units that operate independently and simultaneously, each unit has its own manager that acts autonomously and with due diligence (Drucker 1974). In the case Alton Towers this units include conference and events, human resource, health & safety, sales and marketing, security & medical, finance, technical service and hotel. Diversification of these functions enhances reduction of risks. Organization structure that is decentralized is very beneficial development of a business as the top level managers will have time to concentrate to important decisions. Motivation is increased among employees as they are empowered to make decision in various functions. A function like welcoming visitors is conferred to specific managers; this is a form of empowerment that will make a department like that of welcoming visitors to have increased their response to change in case challenges arise. Decentralization organization structure is similar to matrix organizational structure. This is because both the old bureaucratic approach and autonomous management approach are present. Alton Towers Company and Shell are two very diverse companies both in purpose, aims, objectives and ownership structures. While Alton Towers is a leisure company, Shell is an energy company which deals with oil and energy products. Alton Towers Company is a public limited company while Shell is a subsidiary of Royal Dutch Shell. However, the two companies have the same organization structure; functional organizational structure. Although Shell started off with a matrix organizational structure, it later adopted a functional structure in 1995. References Beaton, Kendall, 1957. Enterprise in Oil: A History of Shell in the United States, New York: Appleton-Century-Crofts. Blanchard, K. H., & Stoner, J. 2003. Full steam ahead!: Unleash the power of vision in your company and your life. San Francisco: Berrett-Kohler. Bridges, Harry, 1972. The Americanization of Shell: The Beginnings and Early Years of Shell Oil Company in the United States, New York: Newcomen Society in North America. Drucker, P. F. 1973. Management: Tasks, responsibilities, practices. New York: Harper & Row. Drucker, P. F. 2008. The five most important questions you will ever ask about your organization. San Francisco: Jossey-Bass. Hill, 2005. Organizational Change at Royal Dutch/Shell. Oxford University Press. Howarth, S., Jonker, J., & Sluyterman, K., 2007. The History of Royal Dutch Shell: Four-Volume Set. Oxford University Press; Box edition. Keenan, Denis, (12th ed), 2003. Law for Business, Pearson Education Limited, England. Read More