Exemplification Essay on Understanding SWOT on the Shell Example

Introduction

One way of understanding the company’s environment is through a SWOT analysis model that assesses the organization’s internal and external factors that influence its business processes. Specifically, the SWOT analysis model examines the Strengths, Weaknesses, Opportunities, and Threats within a company’s environments (Redgwell, 2008).

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Shell Company History

Shell Company, officially known as the Royal Dutch Shell Plc. is one of the largest multinational organizations and valuable brands globally. It is a multinational company in the oil and gas industry. Shell has its headquarters at The Hague in the Netherlands but is incorporated in the United Kingdom (Georjon, 2004). The company was formed through a merger of Shell Transport and Trading Company from the UK and Royal Dutch petroleum which was based in Holland. Shell is among the six major companies in the oil and gas industry commonly known as the super-majors.

HR Management in Shell

The Human Resource (HR) pool at Shell is one of the largest among multinational organizations. The company has more than 35000 employees located in its offices around the world. The annual budget of shells HR is estimated to be in the region of US$900 million (Hickman, 2010). This also indicates the heavy investment that the organization has put in developing its human resources in order to achieve its objectives. One of the most critical areas in the company’s HR management is the health and Safety Function. Petrol filling stations are some of the most hazardous environments due to the highly flammable nature of oil and gas products (Campbell & Miller, 2004). Therefore, it is necessary for the organization to put in place appropriate measures to ensure high health and safety standards for its employees as well as customers within its premises.

SWOT Analysis of Shell

Shell Strengths

The companys diversified product range gives it a greater competitive advantage.

Shell has a huge pool of resources, which guarantees future business operations through investments in exploration and new technologies.

Shell is a globally recognized brand with a positive reputation as it has been recognized as one of the most valuable brands internationally.

Weaknesses of Shell Company

Shell’s huge investments in oil and gas necessitate a continuous process of exploration in order to find replacements for the supplies.

The company experienced challenges with its waste management practices as they are deemed unfriendly to the environment.

Some of the company’s operations are located in politically unstable countries, for instance, Nigeria, where the company’s distribution network is constantly affected by the chaos.

Shell Opportunities

There is still a lot of potential in terms of discovering new locations for oil and gas in the future.

The company has invested in some of the places which rich reserves such as Iraq, which had not been explored before.

Shells diversification into new products such as biofuels paves way for sustained operations and opening up new markets

Threats of Shell Company

The volatile nature of oil prices leads to constant fluctuations in the company’s profits.

Political instability in countries like Nigeria threatens the company’s operations.

Adverse weather changes such as Hurricane Ike can have adverse effects on the company’s business processes.

References

Campbell, T., & Miller, S. (2004). Human rights and the moral responsibilities of corporate and public sector organizations. Dordrecht: Kluwer Academic Publishers.

Georjon, A. (2004). Shell Truck Marketing Communication Strategy. Munich: GRIN Verlag GmbH.

Hickman, G. R. (2010). Leading organizations: Perspectives for a new era. Los Angeles: SAGE Publications.

Redgwell, C. (2008). Beyond the carbon economy. Oxford: Oxford University Press.