BUSINESS ENVIRONMENT

Business Environment - Royal Dutch Shell

Abstract

Royal Dutch Shell PLC is a company with its headquarters in England and is considered to be the second largest company of the world because of its revenues. The company is considered to be a valuable asset for the world. A vertically integrated company, Shell has proved to be an active player in the oil and gas industry. The following paper discusses in detail various forces influencing Royal Dutch Shell PLC reflecting the outcomes and results.

Abstractii

Introduction1

Discussion1

Background of the organization1

Mission, Vision and Objectives1

Royal Dutch Shell and British Petroleum3

Royal Dutch Shell and its Stakeholders3

Figure 01: Stakeholder Power and Interest Matrix4

Internal Stakeholders4

Shareholders4

Employees5

Suppliers5

External Stakeholders5

Customers5

Local Communities6

The Interest Groups7

Government7

The Media7

Understanding the nature of the environment in which Royal Dutch Shell operates7

The Concept of Aggregate Money Demand8

Falling Income Tax Level8

Rising Pound Value8

Falling interest rates9

Large increase in unemployment9

Increased Government Expenditure9

Market Structure of Royal Dutch Shell PLC9

Market Forces affecting Shell's operations9

Opportunities and Threats for the Organization10

Role of emerging markets in the operations of Royal Dutch Shell10

Benefits and constraints of policies of the European Union on Royal Dutch Shell PLC10

Conclusion11

References12

Business Environment - Royal Dutch Shell

Introduction

Royal Dutch Shell is a multinational oil and gas company having its registered office in London, UK. Operating globally in 90 countries, Shell is reported to have produce 3.1 million barrels of oil every day. A primary company listed on the London Stock Exchange reported market capitalization of £140.9 billion as of 2012. The following paper describes in detail the company operations, its stakeholders, the impact of the external and the internal environment on the company's operations and the global factors surrounding the proceedings of the company.

Discussion

Background of the organization

A global petroleum company, Shell is headquartered in The Hague, Netherlands. The parent company is known as the Royal Dutch Shell which is located in England and Wales. Shell aims to drive forward with profitability and have sustainable development and growth (www.nioclibrary.ir). It aims to provide returns to its stakeholders and strives to meet the energy demands of the world. It focuses over exploration of new oil and gas energy sources and maintains a sustained case generation from the current assets.

Mission, Vision and Objectives

The executives at the Royal Dutch Shell are expected to act in accordance with the business principles at all times and adopt the principles of honesty and integrity in all the dealings. The principles are devised and applied by the corporation in all the business operations. Shell does not believe in the concept of executives being accused of cheat or misdeeds (www.royaldutchshellplc.com). To avoid the disgraceful situation, Shell makes sure that all of its employees work in accordance with the core principles.

Shell aims to engage itself effectively in oil and gas businesses and search for ways to develop and grow efficiently. The overall purpose revolves around the strategy of meeting customer needs and the demand of energy globally. Oil and Gas, the integral aspects of the energy needs shall continue to be an important factor in economic development of countries worldwide (Frankfurt, ...