By: Romal, Jehangir, Fakhar and Moez

Contents
Business Strategy .......................................................................................................................................... 3 Contexts of business strategy ................................................................................................................... 3 Mission .................................................................................................................................................. 3 A clear business mission should have each of the following elements ................................................ 3 Example (Shell)...................................................................................................................................... 4 Vision......................................................................................................................................................... 4 Examples ............................................................................................................................................... 4 Objectives ................................................................................................................................................. 4 Example ................................................................................................................................................. 4 Core competencies ................................................................................................................................... 5 Example of (MacDonalds) .................................................................................................................... 5 Strategic control........................................................................................................................................ 6 Example of Apple .................................................................................................................................. 7 Identifying the concepts in an Organization ................................................................................................. 7 Mission ...................................................................................................................................................... 7 Objectives ................................................................................................................................................. 7 Vision......................................................................................................................................................... 8 Goals ......................................................................................................................................................... 8 Brief analysis ............................................................................................................................................. 8 Shells contribution to Pakistan ............................................................................................................ 8 Discussing the strategic Concepts of Shell .................................................................................................... 8 Recommendations .................................................................................................................................... 9 Stakeholders ............................................................................................................................................... 10 Stakeholder Risk...................................................................................................................................... 10 Internal Stakeholders .......................................................................................................................... 10 Connected Stakeholders ..................................................................................................................... 10 Response Risk...................................................................................................................................... 11 External Stakeholders ......................................................................................................................... 11 Response ............................................................................................................................................. 11 1|Page

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Stakeholder Analysis ........................................................................................................................... 11 Stakeholder Roles ............................................................................................................................... 12 Dependence on Stakeholder............................................................................................................... 12 Stakeholder Interest Areas ................................................................................................................. 12 Stakeholder Map......................................................................................................................................... 13 Stakeholder Grid ..................................................................................................................................... 13 Shell and its internal stakeholders ......................................................................................................... 14 Share holders ...................................................................................................................................... 14 Employees ........................................................................................................................................... 14 Suppliers.............................................................................................................................................. 15 External stakeholders - interest groups .................................................................................................. 15 Shell ............................................................................................................................................................. 17 PESTLE ..................................................................................................................................................... 17 SWOT Analysis............................................................................................................................................. 19 SWOT Analysis of Shell............................................................................................................................ 19 Strengths: ................................................................................................................................................ 19 Weaknesses: ........................................................................................................................................... 19 Opportunities: ......................................................................................................................................... 20 Threats: ................................................................................................................................................... 20

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Business Strategy
Strategies emerge or formed in the mind of the strategist or they do not exist. However strategies happen in the coming future so therefore it can just formed or exists as idea in the mind of those one who is responsible for succeeding. Business strategy describes that how a popular business aim to succeed in its selected market place against it competitors.

Contexts of business strategy Mission

A mission defines the organizations basic role or function in a society in terms of the products and service it produces for its customers. OR A mission may be describes what an organization is, why do they exist in a society, or its reasons for being. Your mission statement should define who your primary customers are, identify the product or service which you produce. It simply means that what a company presently does and how they plans to achieved their respective goals. A clear business mission should have each of the following elements

Purpose
Why the business exist

Strategy and scope

What behaviour and how

Values
What management believes in

Standards and behaviour

The rules that guide how the business operate

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Example (Shell)

Shell mission statement is manufacturing and supplying oil products and service that satisfy the needs of our customers. Shell continues to deliver a great amount of quantity to our stakeholders by providing a great rank or a quality station and maintaining our high performance plus improving our standards.

Vision
Vision defines as what the organization actually wants to be or where they can see their self in the future as a successful company. Sometimes a vision statement describes as a picture of your company but its much more than that its your inspiration actually.
Examples

Some charity is working with the poor people and their vision statement will be a world or any area without poverty.
Shell vision statement

They want to be the market leader and to deliver the best quality value to our stakeholders To be on top list performing and most admired refinery in Asia.

Objectives
When we talk about objectives or a goal here we mean a target which we would like to achieve in the future within an expected timeframe plus with available resources. Sometimes objectives give the business a clear-cut target view that what have to be achieved. Objectives are the statements of specific outcomes that are to be achieved; it is desired or needed results which have to be accomplished in a specific time period.
Example

Some main objectives of shell; To meet our customer requirements. To provide continuous sustainable health, safety, environment and security excellence. Give benefits to our shareholders.

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Core competencies
First of all the term Competency refers to a combination of skill and behaviour which are directly related to successful performance on the job. Core competencies are the skills, attributes and behaviour which are considered important for all the staff of the organization. It is a unique ability that a company acquires from its founder or develops which cannot be easily imitated. They are the sources of competitive advantage and are the building blocks to future opportunities. Example The core competency of Apple

Customer benefit Difficult to imitate Uniquely identify the organization Can be leverage

Yes, the customer clearly benefit from the great user. Yes, the companies have been trying for years and not yet succeeded Yes

Yes, this core competency has been rolled out to the iphone. Ipod and ipad recently

Goal
In future if you really want to see your business as successfully then its important to describe and set your business goals to achieve it, especially before you started. At simple, a goal is something that what you aim for but remember goals are one of the powerful benefit factors for the growth of a successful business in future in a several ways. Example of (MacDonalds) In the next few years MacDonalds aim is to achieve these goals in future.
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To develop more new menu offerings so that there will be a large variety of choices for our customers which will be provided in coming future. To develop more happy meal choices, including non-carbonated beverages without added any sort of sweet. Focuses on to our time-table for new nutrition information. To make sure that we are advising by best scientific information regularly.

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Strategic control
Strategic control is a type of management strategy that managers use to manage their employees and to control the behaviour and performances the employees. This can also be defined as the process of monitoring as to whether to various strategies adopted by the organization are helping its internal environment to be matched with the external environment. Strategic control process allows managers to evaluate a companys program from a critical long term perspective. Types of strategic control Premise control. Implementation control. Special alert control. Strategic surveillance.

On going process

Shaping and achieving broad plan Broad plans are for achieving strategic External environment

Top management or internal environment to achieved

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Example of Apple Any organization with their strategic capabilities becomes a leading icon in strategic development and when they start exploiting and expending their capabilities in such an innovative way so it becomes harder for other competitors to compete or to produce new markets opportunities. E.g. like Apple has always been using its leading IT knowledge in introducing every new product with revolutionary IT techniques to capture the new market.

Identifying the concepts in an Organization

The organization which we have selected is Shell. Shell is a worldwide group of energy and petro-chemical companies. They have around 93,000 employees in more than 90 countries internationally. Shell helps in to meet the worlds growing demand for energy in environmentally, socially and economically. Shell has been helping to meet the worlds energy needs for over a century and is ready to help tackle the challenges of the new energy future. The concepts which are identified in the shell business organization Mission. Objectives Goals Visions.

Mission
Shell continues to deliver a great amount of quantity to our stakeholders by providing a great rank or a quality station plus to maintain our high class performance in the future. Constantly achieving operational excellence. Conducting our business in a safe and secure environment. Manufacturing and supplying oil products and services that satisfy the needs of our customers.

Objectives
To deliver structure cost reduction. To maximise refinery margins. To meet our customers requirement. To safe guard assets integrity. And provide benefits to our shareholders.

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Vision
Shell refining company is trying their best to be the top performing and most admired refinery in Asia.

Goals
Goal of the shell refining company is to improve customers experience in future. Shell always believes and focuses on supplying top quality, right quantity and providing great service in future.

Brief analysis
Shell is amongst the top refining company globally. They have won many awards regarding to environment, safety or brand. Shell won platinum award in Asia in the retail station category in readers digest super brands 2005 awards. Shell customers service centre in (Malaysia and Singapore) was judged gold award winner for best in house contact centre. Furthermore shell has a rich legacy plus along companionship with Pakistan from many years as it is one of the oldest multinational companies. Shell Company believes in winning the hearts of their stakeholders is as important as attracting the markets area continuously. Pakistan shell limited company leads the oil industry through a structural social investment program which focuses on health and education. Shells contribution to Pakistan Shell Pakistan Company is associated to the law and regulations of development so it can meet the needs of the current generation without any mutual acceptance of terms the ability of future generation to meet their own needs

Discussing the strategic Concepts of Shell

Shell is basically an international oil company operating around the world. Its products include oils, fuels, and card services as well as exploration, production and refining of the petroleum products. The mission of Shell plc. is to manufacture and supply oil products and services that satisfy the needs of their customers. It is constantly achieving operational excellence and is growing day by day. The company is conducting its business in a safe environmentally sustainable and economically optimum manner. However, the company has been involved in many controversies around the years regarding environmental pollution, health and safety and human rights.

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Shell says that their vision is to reinforce their position in the world as a leader in the oil and gas industry in order to provide a competitive shareholder return while helping to meet the energy demand in a responsible way. In the upstream the company focuses on exploring for new oil and gas reserves and developing major projects where their technology adds value to the resource holders, while in the downstream their emphasis remains on sustained cash generation from their existing assets and selective investments in growth markets. Shell is improving its customer experience every day. With the experience of years, Shell has been able to develop new technologies to enhance the customer experience as it offers a wide range of products for different customers like improved petroleum quality for the customers having high performance cars etc. Shell has also made major strategic retreats in the few years. Recently, it has retreated from alternative energy and is again refocusing on its core oil and gas business.

Recommendations
Shell is ranked as the eight largest company in the world so it should take a lot of care about its reputation as it has been involved in many controversies lately. It has been involved in cases including oil spillages, environmental pollution human rights and has also been accused of bribing the military in Nigeria. So, it should try to take more care so that its reputation is not harmed or these can affect the companys progress as it wants to be the worlds leading company providing oil and gas. The company has also tried to diversify its core oil, gas and chemical businesses. These include nuclear power, coal and metal, hydrogen and electricity generation. None of these were a success and all have now been divested. It suffered a huge loss. Shell should be more careful in investing in other business and should lay its emphasis on oil and gas. It should mostly invest on resources of oil and gas. The overall vision of the organization should be to lead the oil and gas industry and to develop itself according to the change in demand of their customers in a profitable way but at the same time this should be environmental friendly and should not cause any harm to the social values. Shell should also work for many social causes by operating different NGOs for deforestation, betterment of education and for the help of disaster affected people

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Stakeholders
They can be any Individuals, groups or entities which have a certain interest in the company or firms activities or get affected or influenced these activities or the firms performance. The strategies of organization to meet these objectives will also be affected by the external factors.

Stakeholder Risk
Some Strategies that are put into use by the company or firm may have risk involved that may vary to the interest of different stakeholders. For example if a company increase the price of its product and maximize their profits stake holders like shareholders and the owner of the company would be really happy as they are making more money but stake holders like the consumers of the product may not be pleased by this decision and certain prices may even seem outrageous to the consumer and may boycott your product and even form groups of protesters which will be bad for the reputation of the company and also it may affect sales. Internal Stakeholders Are those individuals or groups which reside from within the business as executives, managers, board members, employees, and trade unions they may benefit directly from their contributions to the growth of the business and they may also be affected negatively if the business does not perform well. The internal stake holders are mostly interested Jobs/careers, Money, Promotion, Benefits, Satisfaction. For example potential employees will be stake holders for jobs and careers the investor and other stake holders such as shareholders and board of directors will want the company to make more money in order to get more money out of the business for personal use. Connected Stakeholders Different stakeholders have different Interests such as shareholders have a common interest of increase in the companys profits for better dividends and it may increase share value while banks are looking forward to charge maximum interests on loans while suppliers want their payments as soon as possible which does not allow the company with good liquidity while the customers want good quality goods at low prices with little profit margins, what a good manager or a leading role in the company should do is to keep all the stakeholders happy or at least satisfied by balancing out the conflicts between the stakeholders and reaching a comfort point for all the stake holders for a smooth running of the business

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Response Risk If the stake holders are not satisfied by your arrangements they may react in a manner that can have a negative impact on the business such as unhappy shareholders may sell their shares which may bring down the market price per share and this can also sometimes connect a chain reaction as people start selling their shares other people panic and sell their shares out of fear for losing more money if they sell it later and this keeps going on till the shares are almost worth nothing. If the suppliers are not kept happy and there payments are not reached on time then they may deny credit terms with the company or firm and demand advance payments which might be impossible to provide by the company and may slow down any production processes. If any type of law is broken which may be human rights or environmental issues then the city or an effected individual can sue u and the business might lose a lot of money if the judge finds him guilty. If there is any defect in the product or its quality the customer or consumer may start buying elsewhere or choose a substitute for your product. External Stakeholders Individuals or groups such as customers, lenders or suppliers that are influenced by the decisions of a business but are not members of the business. It is important to get the perspective of both groups. External stake holders have key interest in the quality of the products produced; efficient tax collections pollution control and some interest groups will also have a look out for any environmental violations. Response The govt. agencies may pass bills that include a higher tax on either supplies or your finished goods which will increase the cost of production and higher prices may not be accepted by the consumers. Violations regarding environmental and ethical issues may bring about a bad image for the company and the consumers may boycott its products. For example a fur production company in china made its products from fur that was skinned from wolves rabbits and other animals that were killed and skinned brutally and spent their whole in a small cage that did not even allow them to move properly. A wild life protection agency took notice of the situation and filmed the process put it on the internet and more than 60 percent of fur customers stopped buying fur related products Stakeholder Analysis It is the process of identifying the individuals or groups that are likely to be affected any decisions or actions taken by the business, it shows the relationship and patterns of interdependence between different stakeholders. Then this information is used to assess the different interests of those stakeholders should be addressed. Stakeholder analysis is an important part of stakeholder management.
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Stakeholder Roles Good corporations will help to ensure that the corporations take into account the interests of a wide range of constituencies, as well as of the communities with in which they operate, and that there are accountable to the company and the shareholders. This in turn helps to assure that corporations operate for the benefit of society as a whole. Dependence on Stakeholder As businesses depend so much on the stakeholders in the long run, we need to have great relations with their stakeholders. For example businesses depend on banks when they have cash flow problems such as a bigger initial investment or short term loans for credit bases. All businesses in the long run depend on customers. Good relations with the govt. is important as the govt. will take into consideration any problems relating taxes on raw materials or any other supplies that may threaten the business costs to increase from its sales as the govt. also needs these businesses to keep people employed. These are some of the main dependencies on stakeholders there are also other important dependencies on stakeholders such as suppliers, employees etc. Stakeholder Interest Areas

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Stakeholder Map
Interest/Aspiration Low Low Power/Infcluence High Minimal Effort Keep satisfied High Keep informed

Key Players

Stakeholder Grid

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Shells approach to integrate its stake holder management into its worldwide business practices involved the gradual development of a long term, comprehensive strategy. Shell is often described by researchers as a leader among major international oil companies for its efforts to integrate stakeholder management principles into its business practices.

Shell and its internal stakeholders

Shell's most important internal stakeholders are its employees, suppliers and shareholders. Share holders Other large businesses like shell such as Virgin, Sainsbury's, and M&S are owned by shareholders. Shareholders play a crucial part in the finance and life of the business. They provide a big part of the capital that includes initial investment and liquidity required to set up and run the business. They take a reward from a share of the profits in the form of a dividend. This varies according to how many shares they own and how well or badly the business performed that year. The shareholders then select a board of directors which are most of the time those who own large chunks of the total shares issued from 5 to 50 or 80 percent shareholder. These boards of directors then represent the shareholders and provide a direction to the company now these directors will have to look out to secure shareholders investments as he will be worried about his shares as well. This is set out in a long-term plan which is called a strategy. The directors are responsible for the implementation of the strategy. The board of directors prepares an annual report which is then mailed to each shareholder that lets them know how the business is doing and it also allows them to know where the money goes out of the money and from where it comes back in (financial statements). Employees Employees are important internal stakeholders. Shell employs over 100,000 people worldwide. These include senior international managers specializing in marketing, finance, oil, sales, and gas exploration and other aspects of the business. Other employees include market researchers, geologists, site engineers, oil platform workers, business office administrators, analysts and many more.

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As stakeholders, employees are influenced by management but they also affect how Shell operates. The employees' standard of work, commitment and motivation to health and safety and excellence is vital in order to keep Shell as a leader in the energy field. Mistakes can be costly in terms of reputation and the livelihood of other employees. A main priority at Shell is to respect its employees and treat them in a brotherly manner. It seeks to provide its staff with good and safe working conditions and competitive terms of employment. This has a really positive influence on employees as it keeps them safe and motivated. Suppliers Suppliers are also an important part of internal stakeholders and are Shell's partners in the chain of production. Shell has some core values that are central to everything it does. Shell's reputation depends on making sure that its decisions and actions reflect these core values. Shell works with contractors and other partners in the supply chain who will also be expected to show these values. If they do not, Shell will not use them.

External stakeholders - interest groups

Shell works with a wide range of interest groups. These are decision makers and opinion formers. Individuals and organizations in positions of influence form opinions and make decisions that can affect Shell. These include, government, academics media, business leaders non-governmental organizations (NGOs), and the financial community, they interact with Shell in different ways: Governments - Shell has operations in different parts of the world across all regions of the globe. To gain the approval to operate in these countries it has has to show the host governments that it is operating in the right way. This includes paying taxes, creating jobs and providing important energy supplies. Shell is also working with governments to promote the need for more effective regulation on CO2 emissions The business community - Shell supplies to and buys from hundreds of other businesses. Other oil companies - Shell works alongside as a partner on projects with other international oil companies and other partners, such as government-owned oil companies. Partnership activities have included building new refineries oil and gas supply lines

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The media - it is important for competitive companies like Shell to operate in ways that receive positive media coverage from television, newspapers, and magazines. This reinforces its position in the market and can help to attract new customers through a positive reputation. NGOs often speak about problems, such as environment, human rights or health. They differ in their approaches, starting from offering services and skill to promoting and campaigning organizations. NGOs frequently influence other actors, counting main brands and big international companies such as Shell. Shell involves and works with different types of NGOs on an even basis. For example, it works with and absorbs from over 100 scientific and conservation organizations in 40 countries. Partnerships with other groups help Shell to increase its attitude to the environment. The 10-year association with International Union for the Conservation of Nature has forced changes in its procedures that have lessened the environmental influence.

Shell is dedicated to regarding human rights and helping people. The exploration for oil and gas can take energy corporations to areas with lowly human rights records. Shell uses different types of tools, regularly settled with NGO and think-tank input, to accomplish risks. If Shell selects not to work in these zones, this allows the less moral opponents to exploit labors in these countries. If it stays then it can be a part of the solution. Shell will only function in nations wherever it is capable of following its business values. These values set out what Shell stands for and describe its conduct. This report will focus is on the Royal Dutch Shell Group and carry out an environmental and organizational scrutiny of the known business. In this analysis, the focus will be on the internal and external environmental aspects that has an affect or an impact on the subject company. The analysis used by the company is the PESTLE analysis that launches a more thorough examination on the possible impacts of the factors that have been affecting the conduct of the business of the subject company.

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Shell
The Royal Dutch Shell, which is an oil and gas company, was previously known as the Shell Group. The company has 11.9 billion barrels of oil reserves and has a giants crude production in Nigeria, Oman, the United Kingdom, and the United States. Royal Dutch company has its head office in Hague, Netherlands. The company is capable of producing refined goods and chemicals; they transport natural gas and do business of gas and electricity. The company is also able to develop renewable energy resources. Royal Dutch Shell is said to be the worlds leading fuel retail network group and they owns 46,000 gas stations. RDSGs energy and petrochemical companies provides employment to 104, 000 workers in over 110 countries worldwide. The group is said to be the worlds most succeeding and biggest private and energy Sector Corporation and one amongst the super majors.

PESTLE
This section will discuss and draw on the PESTLE Analysis. PESTLE stands for political, economic, social, technology, and environmental factors. These factors are beyond the control and influence of a business, however, it is important to be aware of when doing product development, business, or strategy planning. PESTLE Analysis consists of political, economic, social, and technological factors. The political factors, covers all the aspects relating to war and conflicts, the government policies, governmental leadership and the government structures. It also covers activities such as terrorism and any political trend. Any action taken by the government of any country or state has a high impact on the subject company. The Pestle analysis covers the entire economical aspect, which takes account of the home economy trends, general taxation issues, market and trade cycles, international trade and monetary issues and job growth/unemployment issues. It also covers the areas concerning interest and exchange rate, internal finance and internal cash flow. The economic factor has an overall high impact in the conduct of the business of the subject company since the stability of the economy of a state will determine how the consumers will be able to consume energy products. The social factors is inclined to include the consumer buying patterns, ethnic/religious factors, the advertising and publicity characteristic, health factor. In addition, the societal factors also take account of the living standards, occupations, fads, trends, consumer attitudes and opinions and media views, the brand company and its technology image, the
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earning capacity of the company, the staff attitude that includes the management style and organizational culture. The social factor has medium impact because the drive of the consumers to acquire the products of the subject company since emotions or social factors has nothing to do with this kind of need of the consumers. Last but not the least, the technological factor of the pestle analysis takes account of the Intellectual property issues, the research funding, the maturity of the technology, information, and communications, internet, transportation, software changes. The technological aspect is significant to the subject company because the changes and advancements of technology will determine on how the company will be able to show improvement in its business demeanor. The political factor has a high impact on the subject company. Due to the conditions to which one of the branches of it is located is the purpose as to whether the company will be able to live to tell the tale at the feat of the within politics. The company is capable to perform with an approach to communicate to the laws of such condition and be obliged to depart to any norms. The next factor is the economy. A states economy establishes a devotion of the companys achievement. Whether the company will be capable to catch the attention of investors or stockholders is the economy feature of the subject company. Additionally, whether or not the economy is capable to catch the attention of its consumers is determine by the safety of the economy. With the advancement of technology, its progression should not be restrained the law though, the advancement should be interrelated to guard the environment. Therefore, the subject company will be able to thrive if the entire company cooperates in the state where it is located. The social factor has the lowest impact on the company due to the cause that the demand for the energy products by the consumers is not determined by the society. The internal and external reason that may perhaps have a collision with the subject company is determined by the means the company will be able to encounter it in the procedure. The company nevertheless has been progressive in the way it carry out its business for the reason that it has a plan of innovation and advancement.

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SWOT Analysis
SWOT stands for Strengths, Weaknesses, Opportunities and Threats. The strengths and weaknesses of an organization are linked with internal environment and the opportunities and threats are linked with external environment.

SWOT Analysis of Shell Strengths:

The strengths are: Shell is the largest in size and revenue in the global oil industry. The managers have affection towards their sub ordinates. The trademark and brand is recognized globally. It has oil refinery plants in more than 45 countries. The employees of Shell are greatly motivated. Local employees are hired by Shell. They have no clash with the government. Care is taken about the hygienic factor. Effective means for the promotion of products are used. In-time delivery to petrol pumps is done. There are incentive based policies for the motivation of employees. The petrol pumps offered by shell are of international standards. The staff is kept up-to-date by mobile training units.

Weaknesses:
Special packages to the regular customers are not offered by them. The core business activities rely only on oil products. The countries having the natural resources tend to have politically unstable government. Any kind of bonus package scheme is not offered. The total number of regional retail managers is eight which are not sufficient to handle the problems. Many of the filling stations dont have a tuck shop. Advertising of the products offered by Shell is not satisfactory. Many of the filling stations have no proper drainage system.

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Opportunities:
Innovation into alternative energy should be brought up by conducting research and development with colleges, universities and government research departments. Partnerships with the manufacturers of complementary products can be useful, such as vehicle industry manufacturers. As an international company Shell should introduce more packages. New reserves of oil and gas are found. Shell should try to move in areas with rich reserves. Company can install more CNG and petrol pumps in rural areas of Pakistan.

Threats:
As an oil company, threats from stakeholder pressure groups advocating environmental issues are there. Threat of existing competitors moving into new markets. The smuggling of petrol from Iran to Pakistan. The installation of increasing filling stations by TOTAL.

Bibliography
i

http://wikipedia.com

http://google.com http://shell.com http://maxigood.info http://valuedarticles.com http://ehow.com http://web-books.com Organizational Restructuring within the Royal Dutch/Shell Group By Robert M. Grant

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