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Transformation of Shell - 4 - Essay Example

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Transformation of Shell - 4

From the results of a series of exercises conducted by several private management consultants, the company began to shift from their strict business attitude to social and environmental performance. As a result, the leadership attitude of the officials also changed; they geared up for taking more responsibilities. Similarly the Shell revised ‘General business Principles’ with regard to the results obtained from the integrity works. In addition to this, the company developed its own Web Site facilities in order to get timely feedback and suggestions from the public. Likewise, the shell international conducted ‘written and face to face’ conversations with stakeholders to remove their dissatisfaction.
These changes were necessary for the Shell international since they had suffered a lot of internal as well as external problems such as Brent Spar issue, Nigerian human rights, and Shareholder campaigns. The resistance of Greenpeace to the disposal of Brent Spar at sea attained media coverage which reduced the company’s reputation among the public. The Shell also faced a consumer boycott which caused the decline of their sales volume to a large extent. Similarly “Shell’s return on average capital employed (ROACE), a common measure of performance in the petroleum industry, showed that the company lagged behind many of its competitors” (Lawrence, 2000, p.533). In addition to this the Shell executives had to compete with discount retailers at retail level which led them to reduce their efficiency in business operations. At the earlier stages the company had followed a matrix form of organization which resulted in red tapism and delayed decision making.
The close analysis would make us think about the essential changes Shell required for taking advantage of maximum opportunities from the business. The Shell international had forgotten the basic principle that customers are the crucial part of a business without whom a business can ...Show more


The shell management had commenced a process of restructuring company’s internal organization in early 1994 in order to improve Shell’s financial position and to vie with its…
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